I haven't researched deeply into players into either side, but my understanding was that the non gaming console players in general were pretty poor. Slow boot times, lots of firmware updates with some painful update processes, and some other issues. Where as the 360 and PS3 are pretty quick to load and play a disc, and with their built in online networks pull down the updates easily.

To me, the whole idea of having mandatory field upgradable players like this is another reason for neither format to succeed. Who honestly has ethernet in their home entertainment setup outside the world of geeks like ourselves? Built in wireless might have been better, but you are still mandating fast internet service and infrastructure just to watch a movie.