While an Xbox isn’t the absolute best home entertainment system, if you are on xbox live then you should have access to ESPN3, and Netflix. I assume they’ll add more. We have the Xbox Live family pass for $99 you get 4 accounts. I am not on there very often but I do get on and watch some netflix. Right now my ESPN3 isn’t working because there is a problem with TimeWarner/Brighthouse Networks that Xbox can’t validate our ESPN3 accounts.
I ended up getting a Roku for my kid’s room. While I’d prefer one that lets me browse my home stuff as well, so I’ll keep watching what’s out there before I decide on my own system. PS3 gets you most of what Xbox live does (not sure about espn3) and adds Blue Ray. Now I will say the Roku Netflix browser is the best I’ve seen. I don’t care for the netflix add-ons to the DVD players.