XBox DVD player intentionally crippled

Okay so I'm a few years too late with this but the XBox Music Mixer, which I'm writing something else about, reminded me how much this bugs me.

The XBox is 100% capable of playing back DVD movies in 480p mode, making it a progressive scan DVD player.  Microsoft made it not do that.

I don't know why - maybe to appease the movie industry, maybe to keep people from buying the XBox and using it solely as a DVD player (since rumour has it Microsoft loses money on every XBox they sell).  But it bugs me.

I hate finding out products I own are intentionally crippled.