Flame suit on....
Some of the best DVR software is gone (SageTV, BeyondTV),
Windows Media Center is all but abandoned
The best movie/disc playing software is gone (TheaterTek)
DRM/licensing has made things that used to be easy (playing movies, recording TV) a lot harder, and it doesn't work as well.
DRM/licensing has made PCs second glass citizens for streaming (Netflix/Vudu/etc's best quality is only available on standalone boxes like the aforementioned Roku)
For my part, I'm still using the same basic setup I had 10 years ago, SageTV is the core of my system still because as far as my needs/concerns go, nothing else has even reached parity with SageTV in the ten years since I bought my first license or the two years since Google ended it's public development. I no longer actually have an HTPC connected to a display* (I have SageTV on my server managing media), I no longer play discs with a PC (Blu-ray killed that, standalones are better and cheaper for that). Yeah HTPCs can do a lot of things, but due to DRM and licensing issues they just can't do them that well (jack of all trades master of none sort of thing), though they're probably "good enough" for most people.
*I do have a box with OpenElec in my HT, and that's probably one of the best things that's happened, XBMC keeps improving and Openelec basically lets you build your own XBMC based streamer. Though that's still basically an experiment since it doesn't support native resolution switching and still isn't quite there.
See what an anamorphoscopic lens can do,
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