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TiVo has always been more reliable that the cable company DVRs I've used. They've had more capacity for recording. TiVo's wishlists, universal search, and season pass management all have meant I've missed fewer shows that I've really wanted. And my kid could operated from about age 5 or 6. (I'd swear that even picking out their shows themselves from the "Now Playing" list actually encouraged some reading because they were goal oriented they were limited to an hour or two a day).
I like being able to remotely schedule a show for recording while out of town or on vacation.
We use the transfer option in my house to transfer shows from the family room to the bedroom and vice versa (however WiFi G is not fast enough to watch an HD transfer in real time :^( ).
Last night, I watched YouTube videos of David Bowie and Arnel Pineta the new singer for Journey via the TiVo. Yeah the video was crappy, but it was not a horrible experience and the audio was actually decent through my speakers. I didn't think I would like doing this as much as I actually did. Just wish TiVo had a remote keyboard rather than using the onscreen keyboard for faster surfing.
I'm a Rhapsody subscriber and so it has been convenient to use my TiVo to access my playlists and library (however I REALLY HATE logging in every single time to do so).
I've owned a TiVo for almost 8 years. Yeah, I'm spoiled. Is the differential value worth it to everyone? Maybe not. Just like any form of higher "luxury" (Mac vs PC, HD big flat panel vs cheaper smaller LCD or glass tube, luxury car vs econo box), fundamentally they all delver the same basic functionality (despite what the zealots will tell you). It really comes down to whether or not you care about that difference and whether or not you can afford or want to pay for the difference.
It was worth it to me. It may not be worth it to everyone.