Media Center-powered CE appliance is under development. The current implementation on desktops and laptops gives it exposure, but the possibility of a more focused device could help potential users understand just what the package is for. On the other hand, competition from entrenched STB manufacturers and service providers could squeeze prices too low for whatever system is being cooked up in Redmond, which clearly considers our preferred "throw bags of money at the XBMC dev crew" strategy unsound. Barring convict redemption ideas cribbed from obscure French romance flicks released early this decade, what do you think Microsoft should do next?
[Picture courtesy of Thomas Hawk]