Also, if we're talking high end processors, we aren't talking about this particular device
A 2.8GHz single core is a pretty careful choice. It's a pretty good balance that supports a wide range of content, remember not everything supports multiple cores well (or hardware acceleration for example). This processor does everything up to 1080p24 (what you see on apple.com for example) and also supports flash video, etc. On one hand, there's a great deal of discussion of ION or other graphics centric solutions, which are great when that hardware matches *exactly* what you want to playback, but then try something not optimized (flash for example) and you are very limited. On the other side, there are more powerful CPUs, but the expense (and cooling requirements-noise go up) and in most applications you won't see one lick of improvement, I know because we tested a lot of them before settling on this one.
I have a Xbox running XBMC and it's amazing for less than $100. Saying "XBMC is better" then going on to conclude that the $300 Link is "an exceptional value" doesn't make sense. His conclusion does not match his observations.
Well, this combines a HW and SW comparison. Wrt to HW, a modded second hand X Box is an unbeatable value for standard def, period. It was subsidized HW and can't be beat (particuliarly at $100). If you can get past the modding headaches and SD limitations, you won't find a better value. In fact, if you need component and composite connectors, the LINK doesn't support that at all.
That being said, the LINK is many years newer hardware. The processor is 2.8 GHz 64 bit v Xbox's 733 MHz (IIRC) etc. and the LINK has HDMI, HD GPU, etc.
Wrt to SW, the LINK is evolving from its starting point of basically stock Ubuntu with a collection of apps (including XBMC and Boxee) to a more seamless, integrated experience. The app software is all GPL, so parts of many apps will be integrated over time, there is still lots of experimentation ongoing (and getting community input during this period is precisely why we launched to users early)
Joe (from Neuros)
Life is a healthy respect for mother nature laced with greed.