Media Center Extender and MKV Playback Device

I would recommend having two separate devices. No extenders do a great job with various file formats and high bit rate files. I have an Xbox 360 in each room for TV (and Netflix), and an HTPC running OpenELEC for my movies. You could substitute the HTPC for a content streamer like a WD TV Live or a Dune player.

I would love if one device did it all, but there are very few devices that can do live television and DVR.

I believe the tuners in the Ceton can be networked, so you can assign individual tuners from one PC to another PC on your network. Things get messy when you add more HTPC's to your network. I don't think the Ceton will reassign the tuners on the fly like the HDHomerun Prime (someone correct me if I'm wrong). Also, copy once protected shows will only play on the PC they were recorded on. Recording schedules are also not shared between multiple computers. It's also not easy to share non-copy once recordings between multiple PC's unless you have a WHS 2011 machine. Using extenders solves all of these issues.

Basically, the whole multiple PC route is a major PITA. Have one PC managing the tuners, and perhaps use that as a your main HTPC. Then use extenders + some content streaming device for other rooms in the house.