Nintendo doesn't want to confuse nongamers with more than 4 buttons of the same color so why would they confuse them with two sets of hardware
"There are some choices that we made in the development in order to achieve that price point. There's no DVD playback capability. And our thinking is most consumers have about 5 different [DVD players] in their house. Our games are not high-definition. Again our thinking is HD penetration is [only] about 15 percent of households."
-Gamespot, Sep 28, 2006
When asked if there was a DVD playback-enabled Wii coming to North America next year, Reggie said that "the answer is no."
-IGN, November 29, 2006
"Nintendo has confirmed to GamesIndustry.biz that there are plans to launch a new version of the Wii featuring DVD playback functionality in Japan.
The Wii's original spec sheet said the console would come with a DVD player as standard, but Nintendo later elected not to include the feature - observing standalone players are now widely available at low cost."
-gamesindustry.biz, 31/10/2006