Sounds like a pretty good idea to me. Kids will watch a favorite movie about 1000 times. Parents love to buy a movie or two for a kid to keep them occupied. Now they can buy a movie for the rugged GBA the kid already has and keep them occupied for an hour+ on road trips, etc.
Pretty soon parents won't have to actually talk to their kids at all except to ask them which piece of entertainment they want to buy now (new DVD, new GBA game, new book (ha yeah right!)) And maybe to ask which variety of Happy Meal they'd like for dinner. This is great news for America.