Actually Gates didn't say that, but I bet he has Kanye West on speed dial just in case. Speaking to students at Princeton, Mr.Gates said the movie studios got too much power with Blu-ray, it's "anti-consumer" and it won't work well on computer. Further, he states, this is the last physical format ever, everything is going to be downloaded or streamed from a hard disk after this, so the physical format doesn't matter. It's the DRM that matters, and he thinks HD-DVD's managed copy is a winner on that front if Blu-ray doesn't stray from their watermarked, AACS encyption key downloading-future.
Powerful statements from Mr. Gates, and while I agree with him on the importance of DRM in consumer adoption of these next-gen technologies, I won't touch with a 75 foot stick the ethical considerations of him complaining about another company making business decisions at the expense of the consumer. Also, as harsh as the statement is, much like Intel's recent comments, it leaves the door open to a Microsoft + Blu-ray future if they come to an agreement on the mandatory inclusion of the ability to copy DVD's to your hard-drive.
Either way, when the blu-ray kills kittens and kicks a hole in your HDTV and doesn't offer to pay for it press release is issued, I'll be here to post it.