I think Media Center as an application needs to exist in both Windows client and Windows Home Server products. Why would we still need it on the Windows client? Because it adequately serves certain markets such as college/dorm students or single person/pc households. It also serves as an entry-level solution. However, in family/multi-pc homes the Windows Home Server/Media Center can offer more of a premium experience. That said, I'd like to describe a future customer experience...
Lets say I bought a Vista Premium laptop and like the functionality of Media Center but want a setup that is more available & dedicated. My next thought is to buy a v2 WHS with the same Media Center capabilities I am already familiar with. So heres the experience I would like to have...
1. Same form factor and plug-in experience that the current generation of WHS units provide. No keyboard or monitor needed.
2. Unique to the v2 WHS unit is that it has a group of (4-6) USB ports on the back specifically for peripherals that are not to be part of the WHS storage pool. I plug-in my USB based tuner(s) into those ports. Thats it (I did not setup Media Center or install any drivers at this point).
3. After installing the WHS Connector software on my laptop and other home PCs I decide to test out the Media Center setup on WHS. To do that you must have either Vista Premium, Vista Ultimate or a Media Extender.
4. Since my laptop is running Vista Premium, I launch Media Center and I see something new (that WHS Connector software installed). I get a prompt that lists the available Media Centers on my home network. I could choose my laptop that is listed there but instead I select the name I gave to my WHS.
5. After connecting, I get the standard LargeScreenUI and prompt'd to complete the first-time Media Center configuration. When I get to the tuner configuration screen, I notice it has automatically detected the USB tuner(s) and is requesting if it may proceed to download/install certified drivers. I click Ok (assuming it would get those from Windows Update Services) and soon after told the installation is complete.
6. Now that the installation is complete, I am able to verify Live TV is operating as expected. All looks good and I'm finished. I notice in the Media Center client there is a "Connect to Media Center" option. Selecting that prompts me with the list I saw earlier, listing all my connected Media Centers. I select my laptop to return to local Media Center operation.
7. So now might be a good time to transfer my previous recordings to the Windows Home Server. I go into Videos, select folder and a menu pops up. The option "Transfer to Media Center" is what I want. And selecting it presents me a list of Media Centers on my home network. I select WHS and a progress bar is displayed as it is processing my request. Also, I could go through the same process with my laptop's Music and Pictures if necessary. This "Transfer to Media Center" is vital for centralizing content.
8. Finished installing, verifying and transfer my previous recordings.
Note: All the things I could do like Remote Scheduling through MSN TV is still possible with WHS. Even installing Media Center applications on WHS. However MC Application installation will need to be done via the WHS Console.
Bonus: It would be a nice touch to have a small LCD/SideShow display on the front WHS. This could be useful in displaying the status of backups, network and a host of things around recordings.