MCE2k5's UI is still far below the end user experience of Tivo.  Sit any person not familier with either down in front of both systems, and I guarentee that they will be much happier with Tivo.  Have used both for years, I still can't stand the remote or MCE interface.

There is no doubt that MCE has more media features, but considering the cost, it should.  MCE2k5 is still not ready for general user consumption.  It's still a early adopter/geek toy.  Until they figure out how to build a good UI that makes sense, and a good remote, this product will still have a niche audience.

Things MCE needs to solve:
-Websurfing from the remote (10 ft. display)
-Built in seamless Antivirus and Antispyware
-Automatic updates without prompting
-Downcoding recorded video to more compressed formats to make it more porable from the 10 ft. display
-Less buttons on the remote!  Many buttons are never or are rarely used.  Make shortcuts instead (similar to Tivo)