Because if a HD DVD drive was added to the main part of the 360, it would be more and more tempting for MS to up the 360's main disc format to HD DVD, leaving all other Xbox 360s high and dry, shelling out £100~ for a HD-DVD box which will be slower than the internal drive (data transfer wise). So yes, it is limiting for older adopters.
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Because if a HD DVD drive was added to the main part of the 360, it would be more and more tempting for MS to up the 360's main disc format to HD DVD, leaving all other Xbox 360s high and dry, shelling out £100~ for a HD-DVD box which will be slower than the internal drive (data transfer wise). So yes, it is limiting for older adopters.