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Xbox Live to offer HD movie downloads?

There are wild rumors, and there are interesting rumors, but here's a doozy for ya: Xbox Live could soon start vending HD movie content, according to one freshly minted Wordpress blog (take that for what it's worth). According to Shsibae (huh?), over 1000+ hours of video will make its way onto Live for rental at about $4 a go, or for purchase (at an unstated price). Hard to imagine Xbox 360 doing for PC-free online movie downloads what all the other companies couldn't or haven't (we're looking at you TiVo, Netflix, iTV, etc.), but then again Microsoft did start up with that Xbox Live music video download thing last year. Seriously though, what a coup would that be if Microsoft swooped in to make the Xbox 360 the premier digital content hub -- with or without HD DVD -- right underneath Sony's nose at the eve of their PlayStation 3 launch? We just hope Microsoft would have a larger drive waiting in the wings if this one turns up roses though, our 20GB is already packed to the gills with game demos.