You are not very up on blu-ray i see. The first gen sony blu-ray players require the insertion of a disc to update firmware, where as the 2nd + gens will update via the network port. I had a first gen blu-ray and updated it several times (i think it is at 1.2.x now) via a downloadable firmware patch.
Quality wise even upconverted dvd's can't even compare to the quality of a blu-ray it just isn't possible when you are stretching and dithering pixels. The sound quality is also much higher if you have a decent surround sound system connected.
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