Listener - to add a couple of points:
According to a website that eludes my right now, while it is technically possible to buy a video card that will pass High Def vid and a bitstream audio (TrueHD or DTS-MA) over HDMI, the sad truth is that the HDCP protections get in the way of making this a viable option without some code cracking. In any event, I haven't yet found solution that is less expensive than a stand-alone blu ray player to get both hi-def sound and video from a blu ray disc.
With regard to quality - this might be due to the fact that my video card is not super strength - I find the image quality to be on par AT BEST with the source played from a stand alone player. Note that, in my set up, both the stand alone player and the PC are hooked up with HDMI cables (for audio on the PC, I use a digital audio out). Perhaps if you got an awesome gaming video card there might be a difference. But for my money, I would rather just buy a standalone player for the money I could spend on the new video card, without the hassle of configuring the video setting and negotiating the audio side of things.
With regard to convenience - sure, if you want to rip just a couple of titles, have at it. But to me, the WHOLE POINT of Blu Ray and DVD on HTPC was so that your WHOLE COLLECTION was on there, meaning no more fumbling with disks. Just scroll through your movies, pick what you want to watch and go.
In truth, though, I think the HTPC thing is more about showing off than actual functionality. Consider this: Even if it only took 8 - 10 minutes to load and rip a DVD, including menus (and not my slower 30 minute time). Consider how many times you will actually watch any single movie, and then consider how long it actually takes to get up and put a disk in the player - probably less than 30 seconds ... let's call it a minute. You'll have to watch each movie 8 times before you start to see actual convenience benefits. And while it's awesome to have a slick interface to show off to your friends when they come over, is it really worth all that work for a 10 minute demo? If they're actually coming over to watch a movie, they'll be more impressed by watching the awesome screen you've got and the great sound system you installed over some (likely glitchy) PC setup. The fact is that my friends come over far too infrequently to make this investment. My wife isn't impressed by this kind of stuff, and the amount of work required to get set up far outstrips any benefit reaped in the future.
