"Why have a 1080p TV with a DVD player integrated and not have a 1080p DVD?"
I think there are several reasons:
1- First, B&O would had to choose between either HD-DVD or Blu-Ray. The combined player by LG is considered a disappointment as its software doesn't work particularly well for advanced features of either format.
2- The current HD players in either format are too bulky to be physically integrated inside the BV-7 or the BC-2. B&O will have to wait until more advanced chipsets are available, needing less PC boards.
3- The Blu-Ray format is still evolving. This fall, an enhanced Java language interpreter (BD Java 1.1) will be available to provide better interactive features on the discs. The question of whether the software of existing players will be upgradable to BD Java 1.1 is still open.
4- Some HD players have trouble reading CDs or burned DVDs. For example, the Sony BDP-S1 player cannot play CDs!
All of these points unfortunately show that HD player technology still needs to mature. So the current choice of B&O to provide a built-in DVD/CD player is the safest for the moment. In two years, this will obviously change. If one wants to play HD discs now, it is probably better to connect a third party player to the B&O TV as the current player technology will be quickly made obsolete.
Best regards,
Jean Vezina