The DMP-BD10 features a 296MHz, 14-bit video D/A converter which supports 4x oversampling on 1080i/720p output. It is of course backwards compatible with current DVDs and CDs and it also upconverts regular DVDs to 1080P via HDMI.
Panasonic offers full solutions for Blu-ray, with speaker and receiver packages to couple with the BD10, but be prepared to spend an incredible amount of money for it. It's probably a good idea to wait a while yet before sampling the new optical technologies. $1300 just seems too far out there.