It will hopefully be the direction we head, will be great for developers and consumers alike.
There's been alot of talk about it over the past couple of years.
Ideally we'll end up with what we have with everything else, a single standard, but varying levels of quality.
For instance, you have an entry level $200 game system from Westinghouse, that is completely capable of playing the games and delivering a fun experience. Then you have a $600 version of the same system from Sony, playing the exact same games with the same UI, but, your graphics and audio are far crisper, faster online play, etc.
Just like with all other electronics. You can buy a $150 Insignia reciever and have Dolby and HDMI and all that, and it will play your music and your movies, or you can have, say, a Pioneer Elite. It will do the same thing, play your music and your movies, but in a much different way.