Vista Home Premium ($100) + PC, 80GB HD ($80) + HDMI video card ($30) + 2GB Memory ($50) + 802.11g Wireless dongle ($30) + Total Shipping ($40) = $330.
AppleTV, 160GB HD ($229) from Apple Store + Shipping ($0) = $229.
$330 (or much more) is a lot of money not to have a wireless remote. You have to simply admit that you feel you're paying more and getting more, but for someone willing to simply pay $229 (and not a penny more), the Apple TV provides an AMPLE amount of value that is virtually unmatched by any other device outside of a NetGear Entertainer, that will simply cost you more. With only a copy of iTunes running and a wireless connection, ANY Win/Mac computer can stream content to the Apple TV from anywhere in your house. Multiple systems in fact, on a virtually limitless amount of storage.
Honestly, you're a geek. There's nothing wrong with that (I am too), but the true test of utility in my book, is the possibility of everyone in the household being able to FULLY use the device without extra effort or explanation.
I carry my Apple TV between two houses (we stay at another house on the weekends), and hope to get an extra one to eliminate the travel... but its one small box and two wires (power & hdmi). ANYONE can set it up in two seconds. Low power, no noise. RIP all the Blu-Ray and DVD's you like and pop them right over to your Apple TV or stream them. If I'm missing my remote, I use my iPhone without problem (or my wife's).
If you want some complicated rig that costs nearly $350 a pop (unless you steal some software and call in some favors), I think your solution is just a pain in the ass (hard drive formatting, installations, hardware configuration, drivers... this isn't retail either and has NO support). For listening to movies, YouTube, music, podcasts, and Internet radio... there is simply nothing as economically feasible as an Apple TV at $229. Only if you're being honest with yourself however.
Is Apple TV the best solution? No. If you want sheer power and options, Windows Media Center is unmatched, especially with Netflix and its assortment of plugins available (not to mention live television recording and DVR). --But, not everyone wants all of that.
Life is short.
~ CB