A site I never heard of having exclusive information on a system we know nothing about at the moment (And who the heck ever says "learnt" like the first sentence of that article)? Needs to be taken with about a ton of salt instead of a grain...
Optical media is so much cheaper per gig than the alternatives mentioned that it makes this easy to dismiss even if it was making the rounds around reliable websites. And Microsoft sure as heck wants to be at the center of your home entertainment and physical media is still important even if it has declined a bit.
Music CD sales are still big business despite years of growth of downloadable alternatives, DVD is the centerpiece of many people's media libraries and is still big business (Although certainly in decline compared to just a few years ago), and Blu-Ray is the only HD media available on the marketplace to purchase today (And I would not be surprised if the Xbox 720 had legacy support for the HD-DVD drive add-on for the 360). Streaming is big business today and growing, but physical media is still very important to far too many people for Microsoft to ignore. People's connection that Blu-Ray equals Sony is no more valid than a format like DVD where Sony also has had a huge stake and a system that doesn't support any of the popular home media formats can hardly be billed as the center of your home entertainment center, which is a angle MS has often used through recent years.
And the 360 is very popular. Backwards compatibility is likely going to be a much more important feature this generation for many people than it was back in 2005 and that will necessitate a disc drive for people to fully take advantage of (How many people have heavily relied on the Games on Demand service? I bet the average is under a game per 360).
Needless to say, I don't believe it. My money is on it utilizing Blu-Ray technology and paying the Blu-Ray Disc Association (And the DVD Forum and whatever industrial organization that handles the CD format) to fully enable playback of media.