Even if Nintendo had 2 SKUs right now and offered a slightly higher priced Wii that had DVD playback, I would have still bought the non DVD version. Why would anyone want to put extra mileage on the laser of a 300 to 500 dollar machine when they can play their DVDS in a 50 to 90 dollar DVD player.
I have a PS2, Xbox, 360 under my Tv and will never use any of them to play a DVD on, I will always use the $50 DVD player so when the laser craps out on that I say oh well and frisbee the thing and buy a new one.