> As another consumer, why does the PC have to stay out of the pizza box?=20

To keep the cost down.
To keep the heat down. (especially in summer  :-)  )
To keep the noise down.
To reduce setup and maintainence headaches.

> What is the advantage of this arrangement over a pizza box that is a=20
> complete PC running Windows Media Center edition?

A - it doesn't run virus server
B - costs less to buy
C - no fragile disk drives for the 2 year old to knock off the shelf
D - cool & quiet
E - documented (yeah, I know, most consumers don't care)

> I now need a PC running somewhere all the time, and I can't record video=20
> with this. As opposed to say a TiVo that I can just turn on and use.=20

Tivo wants a monthly fee.  Tivo spys on you.  Are you SURE that Tivo will
let you record any show you want, and archive it?  And will continue to
do so?  They are making another attempt to get the broadcast flag into law.

> PCs are also=20
> cheap enough to just buy everyone their own do-everything box, and save=20
> a lot of hassle.

PCs are a lot of hassle to set up and maintain.  This would be *less* hassle.
A *lot* less.  If you want to decode HD in software you need a LOT of CPU and
CPU is expensive.  And uses a lot of power.  If the source is HD you have to
decode HD even if the display is just SD.
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