I've been using a HTPC for a number of years now. I like the fact that I've ripped all the kids movies to the hard drive so they don't need to touch anything. They just press Movies on the Harmony and it all fires up to the TV. I'm using MediaPortal on XP instead of WMC for now and the kids can just scan through the cover art and pick the movie they want.
I also had the luxury of cabling my house when we built it, so all the equipment can connect to any of the TV's in the house through a component matrix switch. Once I move to HDMI, however, I'll need to find a streaming solution. Luckily I have 2 Cat6 runs to every room in the house right next to the component runs.
