HTPC that can switch video? A build challenge...

I'd like to build a HTPC that serves as the single focal point for all entertainment in the living room -- something that can do both media serving (movies, music) and video switching. That is, something like this:



I'd like to move video switching from the receiver to the HTPC, so the HTPC is not just a video source to the receiver/TV, but the controller for all other components. Doing this allows for a seamless, integrated entertainment environment, with no fiddling with horrible receiver controls. But I have no idea if this is possible.

My particular requirements:

• No DVR or tuner required - satellite receiver handles this
• No external disc player - HTPC uses internal BD drive
• I have nothing specced out -- need to determine interface software, box specs, external HD specs, etc

Any thoughts? A few older threads here seemed to ask a similar question, with no resolution as yet. If today's (or tomorrow's) HTPC can't do video switching (including HDMI), I can always move the satellite/xbox/wii/etc upstream and connect straight to the receiver. But it would be so much cleaner to have the HTPC do it...

Thanks for the replies; I like the Harmony idea. That comes closest to my dream of true component integration and single control point. The HTPC, for me, will be just a media server.