WMC is a fully functional household DVR system. Its the only PC solution out there that is fully CableLabs certified to tune fully encrypted content via cablecard like HBO, Cinemax, ESPN Copy Once programs, etc. Its built to have one main WMC, and can stream its content to what are called extenders. Xbox 360 is one. Ceton Echo is another. There are a couple of others out there as well. You put these at other tvs and you get a whole house DVR. Or if using HD Homerun tuners, one can assign tuners to different computers in throughout the home. While it has lacked development, and downright stopped with some of its great ideas(Internet TV and Sports), there are still some nice plugins like MyMovies and Mediabrowser classic. I think with a little enginuity, perhaps the Internet TV bar could be brought back and linked to some modern metro streaming apps to create something nicer than any of the other poor, third party efforts at a real media center.
i used to use it to watch dvd's with ffdshow, but then they had to go and mess with it for windows 8....free app becomes paid addon. why??? so now i just remove the packages and use a portable codec pack + mpc portable. few clicks, all my codecs are registered, media player & wmc packages are removed. i can then enjoy some movies.
My house runs on media centre, i have a server sat in the office with 4x dvb-s(HD statellite tuners). 4x DVB-B(freeview). 8TB of storage(for tv, movies, music, picture). This then connects to a dedicated media centre in the front room with a built blu ray drive and I use it as a pvr. This then feeds 4 xbox extenders(tv in every room and access to media stored on the server). tablets and smartphones(watch media or any tv channel anywhere).