My Xbox360 spends most its life as a media playback device. The experience and interface, despite several updates, is still inferior to the experience I had with XBMC on my original Xbox 5 years ago.
I've considered building a small set-top PC, with XBMC running on linux booting off of a USB stick. The only reason I switched from my Xbox is that HD content didn't work very well.
I have an original XBox still, which is used 98% for XBMC. It's fantastic for most uses. However, it's awful for H.264, doing as little as 1fps for some videos.
On the other hand, my ASUS EeePC 900, running Ubuntu with XBMC, is able to handle this at almost 30fps. The little thing is a pretty nice device all around, especially considering what it is and its price.