http://www.kotaku.com.au/2010/09/activision-considers-selling-video-game-cutscenes/
Only half the price of the game

Oh, great. Is there NOTHING Kotick won't do for money? Does he moonlight as a stripper?

Honestly, this is something I would like. The price is a bit high, but this would be great.
I have been eagerly anticipating finding an excuse to buy a PS3 for years now. Why? Metal Gear Solid 4. I can live without playing the game, but I would really like to know the plot. If I could find a let's play that didn't have commentary, I would watch it in a heartbeat.
Same with Starcraft 2. I liked the plot of SC1. Not a huge fan of the gameplay (especially after trying Relic's take on RTSs). So if I could get the plot and all relevant gameplay wrapped up into a single package (basically, the in-game cutscenes), I would be pretty freaking happy.
Hell, my sister loves watching me play the God of War games and Zone of the Enders, but she isn't a huge fan of the gameplay. Stuff like this would be a pretty good deal for her.
Plus, didn't Galerians do this already? I recall watching some movie called "Galerians: Rion" on MTV many years ago (saw shiny bits while flicking). Think that actually WAS just all the cutscenes from a game in "movie" form.
So yeah. Not too big of a stretch. About the price of a made-for-DVD movie.

Now I'd buy interactive movies if bioware made them, say a mass effect movie detailing the first contact war with the turians, make it interactive with the paragon/renegade interrupts and branch the story at a few major points and that'd be worth buying.
Cutscenes pulled from a game without context? No thanks

Damn you, Activision! Have they no shame? Is Kotick really this much of a greedy corporate asshat?

The man knows how to milk morons. Which means he probably doesn't understand SC2's success as it's not marketed at the moron demographic.
That said, this doesn't seem like something that will happen with SC2, seeing as it's supposed to be happening about five years from now. So Diablo 3 probably won't be as lucky.

Yes, without context it would suck. But who is saying there wouldn't be context? Look at what Kotaku (probably selectively) quoted, not their fluff.
Kotick is basically saying, take the cutscenes, make a movie out of them. He doesn't say "take only the cutscenes".
I haven't played SC2, so maybe all the cutscenes are completely irrelevant and not linked in the slightest. But, for most cutscene heavy games, the cutscenes with minimal linking is all you really need.
Hell, I think one of the Metal Gear Solids actually DID do that as a way to recap a previous game (don't quote me on that though). Just show the cutscenes alone. You have a few disjoints ("How did Snake get on top of that building?"), but those are in most movies and TV shows anyway. And with minimal additions (maybe even just game footage), those disjoints are gone.

I don't think Blizzard will allow anything like this to happen.

Uhm... Go ride public transporation at a university, and then see if you still believe that.
Morons play the games you like too :p

I'm not so sure about that. People who treat it as the de facto sport for an entire country could be classed as such.

I'm not claiming that SC2 is marketed at geniuses here. After all, one of the reasons I was never interested in the first one was that it was too simplistic to be an effective strategy game. But, on average, they're not as outright retarded as people who buy MW2 map packs - Kotick's target audience.

Nope. They're just "as outright retarded" as people who are going to be paying 180 bucks for a single game :p
Seriously, as much fun as it is to pretend you are superior to everyone else because you like something, Starcraft 2 is really NOT a good thing to base that on. It is targeted toward the lowest common denominator, much like most of the incredibly successful games.

I play Civlization games, so Berkley gave me an honorary doctorate.

Last year I was in the markets in Baghdad and saw a movie called Halo for sale... Thinking Oh sonofawtf how did i miss this I picked it up. (2 bucks local currency so like a dime US$)
Well... After a few months of not bothering to actually watch it i saw it lying there and figured why not check it out.
That's all it was, just cut scenes from the Halo Series.....
Would I buy the SC2 ones for a dime sure why not :p but for half the price of the game meh ill pass...

That reminds me of the one time I picked up a DVD for a movie called Everything or Nothing, a long long long time ago in China. It even had Pierce Brosnan on it! I thought it was some 007 film I'd missed or something.
Then I popped it in the DVD player and it turned out to be the ENTIRE GAMEPLAY VIDEO OF THE GAME. Cutscenes, gameplay, everything. What was I supposed to do, ask a bootleg movies store to give me a refund?