I’d rather not pay $60 a year for the privilege of Xbox Live so I can pay to use Netflix. Other than the occasional DLC, there isn’t a lot on Xbox Live that attracts me.
Having 500 gigs of videos, Amazon, Netflix, Hulu, Project Free TV, Youtube, and Google Video all on 1 machine is heaven. It’s easy as heck to use any USB controller to navigate. I picked up one of these for those stupid search bars.
It's a netbook too, so I can pick it up, toss it in my bag, and take it anywhere. The processor is enough to run NES to PS1/N64 emulators.
I've used openelec and XBIAN. So far XBIAN has been the best for me. I bought this remote some time ago when it was a bit cheaper: http://www.amazon.com/gp/product/B0090BTY8Y/ref=oh_details_o01_s00_i00?ie=UTF8&psc=1 I think you might be able to find something better.