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I guess they have a point that people are probably more likely to watch Netflix or Hulu or YouTube or whatever than a DVD. But I like to go to the park on the weekend and evenings, and do a mix of work and play. One of my simple pleasures in life is to sit under a tree on a beautiful day and read or watch a movie. I can read, but I need DVD playback to watch a movie unless it is downloaded. I use the excellent (and free) VLC player on all of my machines, and it supports DVD playback, so a solution for old school DVD fans is just a free download away. VLC play also has the benefit of being a better player than Windows Media Player, in my humble.
It comes down to how much it will costs to add the capability for MS. A couple of dollars for each copy of Windows 8 would add up to serious money. Since there is a free alternative already available, this is a "meh" loss to me. But a lot of Average Joes and Great Aunt Marthas might not seek out the free alternatives, so I'm sure there will be quite a few people who aren't happy about this, no matter how much economic sense it makes for MS.