That certainly is changing. With the introduction of many very compentent and cheap video cards and rack friendly PC cases, more and more people are making HTPC's. And wireless multimedia players are eliminating the need from having an HTPC by wirelessly accessing your computer.
http://www.pcmarket.com.au/117...e.php
Some can even output 1080p, although I forgot the make & model or else I would have linked to it.
For being a guy with a cable modem and bunny ears on his [roomates] TV, watching TV on my computer is not uncomfortable at all. I plug in the laptop to the TV via S-video. Soon I will build another PC that will function as both a gaming machine and HTPC.