I think Snipr's got it. This is like the 'Core' 360, except for the fact that it isn't crippled in regards to games made specifically for the console ;P
If they discontinue the BC PS3's in the US, I'm gonna scrounge up every bit I can to get one before they run out. I too would rather have BC over 'improved DVD playback' anyday.
Funny thing is that it sounds like they're pitching this as a consolation to the 40GB buyers... If it's a firmware upgrade, then it would benefit ALL PS3 users.