Such has it been for years with home servers and so-called media centres. The more recent efforts haven't been too bad - the MVix and Apple TV, but where PCs are too big and desk-oriented, these devices are too constrained by media formats, either because of substandard hardware, or locked up software. When video standards are a broad, open market, it pays to be modular: have a tool for retrieval/storage/processing and distribution of media (a home server) and separate tools for presentation of media (a screen or a stereo or a printer). This home server just needs to be a suped-up hard disk attached to a network, with a webserver for GUI and LOTS of protocols for retrieval and distribution of media.
It doesn't sound hard, does it? Yet I've never seen such a straightforward device. The Apple TV is close, but is hobbled by format/protocol restrictions and DRM.
This device shows more promise. It just needs a complimentary box attached to the TV to convert datastreams into the plethora of multimedia formats (Component, co-ax, HDMI, DVI etc.).
I think the latter half of this year, going into next year, will be home media server time