XBMC is the software I use almost every day to watch TV. The artful presentation of metadata and simplified menus of recent builds make XMBC right up there with MS Excel as one of the most useful desktop apps.
In the past I’ve shown at least one workaround to allow watching live TV using XBMC’s GUI. But the magic of the September build is that PVR and live TV is now more deeply integrated into XBMC. Sadly, you’ll still need to compile your own plug-in to get XBMC to work with your operating system’s choice of backend, but plans are afoot in future builds to make this more end-user friendly. XBMC is clearly headed in the right direction and I look forward to trying this out myself.
Right now, I have XBMC as an app in Windows Media Center. When I close XBMC, this returns to WM7 for viewing recorded shows or watching live TV. This actually works pretty smoothly, but I look forward to doing all of this from within XBMC which will give my family one consistent interface.