Yeah, I agree, it really is too bad. Mine's staying in the rack hooked up to the distribution system, even though I can't play in EVERY room (yet). It is nice to be able to play in other rooms.
Last week my wife was out of town on a business trip, so I was playing some GoW with a bunch of friends online, but with the theater being in the basement, I had to run upstairs to wait for a pizza to be delivered. I took my controller along, flipped on the 17" HD Lcd in the kitchen, and continued to play while waiting for dinner to arrive. Very cool!
What sucks, however, is that just 10 or so feet away, on the other side of the living room, which is adjacent to the kitchen, is a 42" HD panasonic plasma, that I have a very hard time playing the xbox on. the seating is outside of the stable range of the controller. I would love to be able to kick back in the living room and play a few games rather than having to use a small 17" screen (rec room and kitchen) or fire up the projector in the theater.
I may give the wired extension over cat5 a try. I just need to order the baluns. I've considered just wiring directly to a cat5 cable, but doubt that it will work for the distance I need to go. I don't know if I have an "extra" cat5 run to the living room though.