I just got my 360 the day after Christmas, and I could use the HDMI, as I have mine hooked up to a 1080p display.
It would be cool if they would integrate the HD-DVD player but I highly doubt it, as its ONLY purpose on the 360 is to play movies.... Microsoft stated this themselves.
However, it would be cool to play HD-DVD in 1080p with my 5.1 system..hmmmm
But I don't feel bad about it. Upscaling looks great on my monitor. And such as technology, things change SUPER fast. Knowing Microsoft, it will probably get delayed, and won't come out until 2008. I can see this coming out at the earliest in Q4 of this year. I don't think they would release it anytime after Christmas, as people would complain they got ripped off because they all just got 360's.