Sure they just showed you the future and it is their Blu-ray player, but maybe you like the present and a little more near-future better. In that case, Sony just unveiled a new DVD player and home theater component system, both HDMI equipped that should scratch the upgrade itch for just a fraction of the estimated cost of the BDP-S1.
The DVP-NS75H DVD player will upconvert your old school DVD's to a crisp 720p or 1080i ad feature Precision Cinema Progressive technology for crisp pictures. Look for it in March for around $130.
For your audio needs, the HT-DDW900 will feature dual HDMI connections, 5.1 surround sound and Sony's Digital Cinema Auto Calibration (DCAC) technology, which uses a microphone to automatically measure the distance between the speakers and calibrate accordingly. This will also be available in march for about $300