Intel's HTPC strategy shifts
According to this News.com story, Intel is rethinking its approach to building and marketing "entertainment PCs." In addition to reducing the size and price of their boxes, Intel wants to de-emphasize the "PC" label.

I, personally, don't have a problem with having a "PC" in my living room. In fact, I have 3 in there now (if you count the XBOX and TiVo). However, I think, for mass adoption, HTPC's will need to be sleeker, cheaper and super easy to use.