The point is though, most of these media "apps" are horribly slow (youtube anyone?) and/or awkward to use(FiOS, Zune Video/Audio for example) or just plain butt ugly ("redesigned" Netflix). I still use my Xbox more for media than games but they need a more powerful box sooner than later. Or they should somehow fix the apps.
There's an update to the dashboard coming as well so I think it'll bring needed performance updates and or updated apps shortly after. Other than that I want to see more of the services expand out of the US but that's probably not something we'll start to see till the next Xbox which, since I bring up the dash, will probably use a very similar dashboard to what the 360 has/will get this year I bet.