It’s true that DVD playback on the Wii is not exactly a killer app; by now anyone who has a Wii probably has plenty of other options for DVD playback. Still, just for convergence’s sake, would be nice to have. I fact Wii consoles already can play DVDs, if you’ve modded the console. And a software-based player is almost surely coming down the line; Nintendo has hinted that the next hardware revision in late 2007 will have DVD playback.
If Nintendo released a software-based firmware upgrade or software app to allow me to play DVDs right now, I’d pay as much as $10-$15 for it. They could easily distribute it via the Virtual Console. The capability has to be there, since the Wii game discs are DVD media.