Indeed, the Blu-ray coating is exceptionally resistant and pretty amazing engineering to get it onto the disc. The problem with your xbox 360 is not any coating on the DVDs, it's the xbox. Generally I've only seen cases of those circular scratches if someone moves the xbox while the disc is spinning, but there may be cases where it spontaneously happens. It's one of the disadvantages of the extreme speeds the disc spins, it has a lot of rotational inertia, and even a small imperfection on the disc or drive spindle could cause it to wobble in the drive and scratch.Yeah I remember reading about that. The solution they came up with for Blu-rays work so well I have no scratches on any of my discs. For some reason my 360 puts circular scratches on my games so I am forced to install every game which is hard since I only have a 20gig. Sorry for the OT.
edit: Adding better coating probably won't help that problem though