Ok, despite many posters here coming down hard on the few that want the tv out feature I will add my 2 cents:
It is completely possible for the Droid to have TV out capability on the hardware side. A serial connection (one pin) is all that is necessary for digital feed.
The software for "on the fly conversion" scaling down and up of image with frame rates at 24+ is necessary. Usually this is better left to a special cable with a mini-board built in (adapter) to provide scaling.
Finally: the best reason to have such a feature is for business presentation purposes! Too many times, some dopey Executive or Project Manager forgets the laptop or sets it up wrong to present to a client etc. Wouldn't you like to be the guy/lady to whip out your Droid, plug it in and save the day? Anyone smell a promotion, or ability to avoid lay-off in this bad economy?
I own a iPhone/Android Game Dev. Company, but i will look into this as a possible project for the Android market.
As an alternative, I believe there is an app or two which allow wifi streaming of files from the Droid SD card to another computer to be played via the media player. I might be wrong, but wouldn't that be a cool app?
Too many projects to look in to. In conclusion, lets try to get as much from the Droid as possible, not jam other for their forward thinking.