Yes, I have a $40 DVD player that does progressive scan and has a component video output. My tv, however, doesn't support progressive scan (though it does have component video in and it does make a perceptable difference.) Thus I can't provide any evidence to disagree with nintendo pulling the progressive scan capability from late model gamecubes, especially in light of the fact that the wii is backwards compatable with gc and will support progressive scan. I do, however, wish that they would make the component output cable of the wii identical to the component output cable of the gamecube, which would enable both consoles to support progressive scan. If they do not I will Grumble Grumble, unless the wii is compatible with standard component cables.
Edit: I agree with Nintendo on the DVD playback issue. Why charge an extra ten dollars for something nobody needs? I have a computer with two dvd drives and a DVD player already, who doesn't? It would make sense to have two separate versions of the console though, one with DVD playback and one without, just for the sake of wire consolidation for those people with component video on their tv. They could even come with different hookups, the component video+stereo cable packing dvd playing version and the cheaper a/v cable non-dvd playing version.