Although it's not a definite sign that Toshiba will be adding any type of web-features to their DVD players, as one of the last major companies to seriously support the continued development of actual DVD technology (Blu-ray is separate from the DVD Forum), they may be in a position to push for adoption of HD DVD features in the DVD specs.
Combined with the continued work on China's extension of HD DVD, China HD DVD (C-HD DVD), it's possible they didn't actually give up on the format war with Blu-ray. Maybe they just figured Blu-ray would probably fail without any competition and are positioning themselves to pick up the pieces afterward.
Maybe if the industry as a whole had taken this sort of evolutionary approach from the beginning we would be talking about the amazing growth of DVD now instead of speculating on the future of Blu-ray.