They are games consoles, not many give a shite about Blue ray or HD DVD and lets face it the quality of either is not that much better than a decent upscaling DVD player.
All these Xbox overheating problems, well having had one from December 2005 I have never had a fault and it gets a lot of use. Look at the Photo somebpdy posted of the Xbox sitting on top of a SKY+ box. I know my SKY boxes generate heat so could that be a contributing factor?
If you want purely a game console buy the Xbox 360 as it does everything the PS3 can. Dont forget the Xbox 360 will soon be playing online against PC players that have windows vista.