Yes. but he didn't use the word "dedicated", you did. There's seems to be a curious idea that a PC that is ever used as a multimedia device
cannot ever be used for anything else, and a PC used for anything else (particularly gaming)
cannot ever be used for multimedia.
That seems remarkably short-sighted to me. Sure, there does exist a market niche for a
dedicated HTPC, and a
dedicated HTPC would probably be SFF, low power, etc. but that doesn't mean that every single system that is ever used to perform HTPC functions must necessarily conform to that specification. Some people like to do more than one thing with their PCs!
Certainly the alleged combination of UVD and a decent HDMI implementation in R600 is the main reason I've held off buying a G80 card for the past several months: a hybrid system, capable of both high(ish)-end gaming and also hi-def video playback is precisely what I want to build. It's dissapointing to find out that I was misinformed about R600's capabilities.
Incidentally, for those who claim that hardware video acceleration is completely unnecessary with a gaming-calibre CPU, here's a benchmark from anandtech where software-only BluRay playback causes a Core 2 E6600 CPU (not exactly a celeron) to hit 100% utilisation.
Third graph on this page:
http://www.anandtech.com/video/showdoc.aspx?i=2886&p=4
With any luck R600 will offer
some hardware-acceleration, but to suggest that the CPU is all you need for video playback in any system that contains an R600 card is disingenuous.