ok, i'll try to break this all down.
XBMC is no longer for Xbox. It was originally designed for the original xbox to make it more of a media player than just a gaming system. it did not work for the Xbox 360, and does not work for the Xbox One either. Now, it can be installed on most platforms. Since it expanded so far, there is no need to see it be put on a video game console anymore. Basically, you connect to "repositories" that host a plethora of videos and other fun things. There are capabilities of streaming live TV (including sports), but I am still trying to figure out how to do that while maintaining quality. unforunately, verizon fios has been eating shit for me recently, so my 75mbps is more like .75 thanks to those douche nozzles. ANYWAY...
the GUI for it is fairly user friends. I got a Raspberry Pi and installed XBMC on it for my parents, so they can watch any movie any time they want ever for the rest of their lives. The repositories I set up for them are updated daily, so any TV show that airs tonight will be there tomorrow. There are multiple sources for each movie/show, so even if one is a bust, or is of lower quality, there will always be another one. Even the low quality videos are still usually pretty good. I do not believe I have found anything over 720P, but that's fine by me considering the price. I believe it has surround sound capabilities, but I don't have surround sound so I can't test the validity of that claim. Setting it up is a little bit of a bitch, but XBMC is absolutely incredible. I have no reason to even use Netflix anymore. I have yet to find something that Netflix can provide that XBMC cannot. Same goes with Hulu, or any other streaming system.
Rest Lame Brats is using OpenELEC to run XBMC, which is one of two primary distributions for XBMC on the Raspberry Pi. My parents are running RaspBMC I believe (I think OpenELEC was having an issue when I was setting it up, so I rolled with RaspBMC). Once running, they are absolutely identical as far as I remember.
The fact of the matter is that I put together a computer for 100 dollars that included the computer (35 bucks), the mouse/keyboard wireless combo (25), the wifi USB dongle (10), the case (5), the required microSD card (10), and the power supply (10), and shipping. Put it all together, install the software, and plug it in to your TV. BOOM, you got yourself a smart-as-hell TV. OpenELEC and RaspBMC are the only two stock distributions of XBMC that also host an integrated web browser as well.
If anyone has any questions, or needs help setting this up, let me know; I have definitely learned a lot about it while setting it up. My parents have it and don't call me every 10 minutes with questions, so it can't be that hard. The only somewhat challenging part is setting it up.
Edit: also, if someone wants to publicly talk about piracy and such right now, do it in another thread. we all know right from wrong here, and we don't need any lecturing or preaching.