the boxee box is an htpc/media entertainment center that plays all types of video, audio, and links with several major websites. it replaces a computer being hooked up to the tv full-time.
rama, this is perfect, really. ps3 needs you to manually decode most of the more esoteric forms of video (like matroska) and isn't the most graceful streamer of music either. oh, and this has full 10.1 flash support, whereas the ps3's browser sucks donkey dick. a modded original xbox can't handle good HD video without occasional hiccups, and it doesn't support hulu or the website features. a laptop's nice, but you've gotta hook it up every time (not to mention most laptops don't like 1080p streaming that much, there are few that'll work without being a lot of money). and a desktop won't support any tv through a digital output (a la hdmi) without 'recognizing' it every time you turn the tv on, which'll screw up multi-monitor support and everything every time you change the channel on the tv (i know this for certain, my tv screws up my three monitors every time). 200 for seamless integrated media support? that's even better than one of those netbook media centers running XBMC or something, and this has gigabit internet, integrated .11n wireless, sd card support, optical audio out, and lots of installable apps to sweeten the deal.
this is a stunning item that i'd easily pay 300 for, and it's only 200...with a full qwerty remote!
ps: connor, check this out for more information about the boxee box.