I bought a 3DO for $700 back in the day, it was supposed to be the "one box" to rule them all, so to speak. That obviously didnt happen. I also had a CDi, which didnt make it either.
I do use my PS3, in conjunction with my PC (streaming) for virtually everything in my living room. I could just manually put my files on the PS3, as there is plenty of space. But streaming is easier. I have a seperate DVR, if they do add that, it would be complete. There is one coming in the UK, yes?
Three keys for me where the PS3 outshines the 360 in the media dept is, a high def drive already in it, the PS3 is much, much quieter which is key for watching movies, tv (I stream downloaded tv shows), or listening to music, and you can replace the HD very easily. You can have much more space than the 360 offers, and for much cheaper.
So for me, it is close to one box doing everything, but its not there yet. I dont know if a console will ever do everything, I think a DVR is ahead right now. But obviously you can only play PC games on it, and not console games. Other than emulators. Same for the consoles, cant play PC games, other than cross platform games.
And yes buying the same movies over and over sucks. We have a ton of old Disney VHS tapes when our daughter was little, and a lot for us as well. We've bought many of them again on DVD, since they look and sound so much better. And some of the VHS tapes got too old, played too much, and were really bad quality. I have since bought a lot of bluray movies.. some in which we had on VHS, and even a few on DVD. I dont buy but a few that I had on DVD, since when upscaled they do look pretty good already. Not worth the cash to get a bluray version to me, unless its pretty cheap. I hate buying the same movie over and over. Which Im sure will happen 10 years from now, or whenever a far superior format comes out again, and TV's advance enough to tell the difference.