What I have now is an idea to use HTML/Javascript for the UI, so that anyone with the necessary skills can easily create a skin or customise it. This would also allow us to leverage the development effort being into WebKit (the rendering engine used by Safari & Google Chrome). Also, this would allow Dashboard, Yahoo Widgets (formerly Konfabulator), type widgets to be created for anything a developer wishes to do.
For the media player, either this could be done as it is now, or simply handeded off to a regular plugin, which is embedded in a web page.
The front-end would be a 'thin-client' with a server component handling the media catalogue and discoverable by something like Bonjour, so you could have one server and then multiple clients throughout the home. The protocol would be XML based, with XSL rendering according to the view being used.
A rough presentation of what could be possible is here (best viewed with Safari, due to use of CSS3):
http://ajmas.dyndns.org/misc/web-htpc/menu.html
For the link above make sure to use maximise the window. The left arrow will toggle visibility of the left pane.
Video (use Safari & Quicktime, then move the mouse in an out of the player):
http://ajmas.dyndns.org/misc/web-htpc/video.html
The link above demonstrates the use of using of HTML for the control layers.
