Most peoples Xbox is connected to their TV. I can see buying iPod TV shows to watch on the go, but if you're going to watch it on a TV why don't you get a DVR if you want time shifting?
Well...I do know a fellow that forgot to return his Netflix rentals...so that monthly fee was now his late fee of $18 for 3 movies ($6 rental each).
Anyway, I am annoyed at slow downloads of Xbox 360 demos and videos as it is. I have FiOS and I get 2Megabytes/sec from some sites. But from MS LIVE, I wait and wait for a 400Meg download of a demo...watching the bar move to the right...slowly...
And with the demos I have and saved games, there is only 10Gig free afterwards. Ofcourse, if I could have BSgalatica downloaded for same price as iTunes Store... hmmm....
Time will tell. All hail our media Center Overloads Overlords!