Ok, I've been thinking.
DVD is a thing of the past. It won't sell a console in 2005. It would be like someone choosing to buy Xbox over GC because it has a CD player. However... in 2005, DVD won't be as popular as it is now.
HD-DVD will be the big thing. I completely forgot about that. In that case, it might be a smart idea for Nintendo to include a DVD player, assuming it's an HD-DVD player. Also, that would allow for customizable soundtracks (hopefully in MPEG-4

) like the Xbox features. Pretty useless I think, but some people love them.
So if Nintendo made a console that supported 1080p, and included HD-DVD, I would be for it. Also, Nintendo should use a slot or tray loading format, because it's harder to pirate (no swap tricks).