Also I just set up my media center extender, and it kicks ass! being able to pause live TV from a console, browse listings, schedule recordings, browse your HDD for music(in game!!), create playlists from your HDD lots of cool stuff.
It's worth mentioning that when PS3 does start to close the gap and maybe pull ahead we're looking at ~2009, at that point Windows Vista will be very widespread, and X360 will probably be $99 for the HDD-less sku.
You'll have a fully functioning media extender, that works with the majority of PC's at the time, for $99, and it just happens to have a huge collection of games. It's gonna be a tough opponent for Sony I think.