The free options like VLC and Media Player Classic HomeCinema have made this built in capability within Windows superfluous. Not everyone knows they exist however, so playback of dvds may be a problem for those not so well informed about the various media players that are available.
MPCHC would be my choice amongst the free programs as it seems to have smoother playback as a general rule.
Playing blu ray on a pc is more of a problem, since there are no free programs that will play them straight from the disc and the version of PowerDVD that is usually included with a BD drive is intentionally crippled in certain ways. MPCHC will playback the main movie, but only on unencrypted blu ray.