I use my

TV to stream media every day. It works great -- but yes I use ethernet. The 360 is hardwired too. I don't trust wireless for anything other than basic internet use on a laptop.
I tried my 360 for media viewing, but it's just too limited. I didn't spend a lot of time with it, but it seems to not support folders. When you have nearly 2 TB of video, not having them in folders kind of sucks. With the

TV, I can point it at my mounted server share, and that's it. Also, it's a lot quieter than the 360.
Here's where my 360 lives:
*snip*