This seems like a good thing for XBox owners. (full disclosure I have a Wii and PS3, Xbox is cool though).
Getting a longer life out of your Xbox is a good thing, I guess it would be rad to get 1080p but im not certain that would make the game that much more fun.
That said, I am interested in the next steps of consoles and there are a few things I really want them all to start doing more of:
1. Open up the process for getting indie games easier into their marketplace. Seriously, you want a ton of awesome games brought to your device.
2. Allow apps on your console. Pandora, Twitter, Netflix, Amazon Video, CNN, Angry Birds, whatever I want anyone to make an app that you can put on your console.
3. Stop charging for your Internet connection. I am not XBox bashing, I just don't like that to access things like Netflix you need to pay for XBox live. They can do a for-pay on certain features, sure, but not to simply play online games and access netflix.
4. Backwards compatibility for downloads. Seriously, our money isn't infinite and I am tired of buying stuff a million times over.
I have more, but this post is way to long as is... :)