I agree 100%.
As I've said in my recent posting, I don't care about ATRAC and don't consider it the best compression technique. Incidetnly, at 256KBps all encoders are pretty much the same. This is around 128-160 where differences start showing up, and this is where MP4/AAC is the best. It is also the only defined standard for multimedia. So - having MP4/AAC supported on Minidisk players will immediately attract fairly large group of users, including myself. Why? Simply because Hi-MD is absolutely superb media. It is removable, high capacity, and the player draws very little power, thus the regular batteries are fine. What is the current situation with non-MD players? Flash memory and other flavors of solid state (like CF or SD) are still too expensive. Hard drive based players are cost efficient in terms of price per MB, but they draw too much power, and another serious problem is that when hard drive crashes, everything you have is gone. That's why I consider Hi-MD format extrmely attractive. yet I'm not going to give up on MP3 or MP4/AAC.
Another important point: with MP3 and MP4/AAC, you have a large choice of encoders and decoders, supported on multiple platforms: Windows, Linux, Mac. Most are freeware. Pick and choose whatever you want, and the platform you want. Do you have this luxory with ATRAC? No. It is only windows-based, and it is only Sony. With MP3 and MP4/AAC, the specs are well documented - hence the available variety of encoders and decoders.
Note that those are official specs. Not something developed internally by Sony, something it can change willi-nilly, not particular caring about its users.
Of course, the abilty to move the files unrestricted between the player and PC (or MAC) is a must. This is what 'the rest of the world' does.
The most important feature of Hi-MD is its FAT structure. it's no longer limited to specific ATRAC format, but is capable of handling any arbitrary data format. It will be a shame not to take advantage of this feature and still limiting itself to ATRAC only.
Finally, you either open MD to allternatives encoding/decoding formats, or MD will be limited to the small group of afficionados who consider ATRAC the best and willing to live with whatever you get from sony, and with no hope of commercial success.