very interesting my uncle in law who works for Microsoft says that entire statement is false.
They have no plans to create a bigger hard drive. a third party company may. They have no plans to create a new version of xbox360 let alone one with build in hd dvd drive... The 360 does currently support HD but not full true HD via HDMI Connectivity... And no plans to add that... And yes the ps3 maybe not completely backwords compatible but its atleast at 95% compared too XBox360's 10% backwards compatability.... I have 20 Regular XBox games and out of all of them the only ones that work on the 360 are Halo and Halo 2.......
So you might wanna fire your source for information.