Sony is set to release an upgraded version of the PS2 next month in Japan. Improvements mostly focus on DVD playback, including new support for progressive out, recordable DVD media, and a built-in IR receiver for a DVD remote control.
All I can say is, "Kick ass." No release dates set for North America or Europe yet, but I think Sony has plenty more to gain than to lose by releasing it here, so I think it'll make an appearance here as well.