Xerox lost tons of money by being a company run by printer salesmen. They didn't execute on their desktop metaphor for use on the business desktop. That is an entirely different discussion that has no relevance to the topic at hand. You'll note that Apple, the most direct beneficiary of Xerox' lack of execution does not use a desktop metaphor for their living room product.
Again, the world already had this argument back in 2005/2006 when everything that we plug in to our living room started needing a dashboard of some form. You pro-KBM/desktop in the living room guys are about 7 years late to argument that you lost before you even joined in.

Believe me, I would love nothing more than for you guys to be right. That would mean that this problem is already solved and I'd have an elegant solution to HTPC gaming. Given that there are only about 20 people that frequent this sub-forum, and only about a quarter of those actually have a PC plugged in to their living room is proof enough that this problem isn't solved and the current offerings do not work. This place is a ghost town compared to the rest of AVS, and with good reason.
Today, HTPC gaming works poorly. Hopefully soon it will work better.
Edited by darklordjames - 7/23/12 at 7:29pm