I can watch my TV and movie collection in the highest resolution available in my bedroom, living room, kitchen, and theater without worrying about if the movie is the right format for the player in that room, or even where the plastic disc it came on is. My physical media are all boxed up so I can have a less-clutered home and a MASSIVE video collection at the same time. I have a little bit of a DVR/CD/DVD/DVHS/HD-DVD collecting problem, but if you were at my house you'd never know it.
Oohhhhh man! I need to share that tidbit with my hubby when he gets back from the War. Maybe that'll be our next step in Entertainment Upgrades! We've got literally hundreds of DVD movies, but even with their slim little boxes, they start taking up a LOT of space!