I chose a discrete solution because that card + a geforce 7100 mobo came out cheaper than a mobo with integrated graphics that could handle blu-ray (g45/geforce 9300). If you can find me an integrated mobo with optical audio out and an HDMI port for under $100, let me know, as I'd rather not have the extra heat of a separate card.
edit: Okay, I see the Intel G45 board is $99.99 on Newegg and it fits the bill. I may switch to that one when I buy the system.
In case anyone's curious, here's what's on my HTPC wishlist. My main priority is to spend as little as possible but still have a useable box.
Case - InWin IW-BT553T.300L w/ 300W power supply ($45)
Mobo - Gigabyte GA-73PVM-S2H ($69)
CPU - Pentium Dual Core E5200 ($66)
Memory - 2x2GB DDR2-800 ($45)
Video - Asus EAH3450 Silent/Low Profile ($30)
Tuner - Hauppage HVR-1250 ($52)
Optical - Lite-On 4X BD-ROM ($70)
Storage - 500GB WD SATA2 (already own)
OS - Win7 RC (will be replaced with 7 HP after October)
Input - remote included with tuner, wireless Logitech keyboard/mouse ($25)
Webbo - why not buy a pre-built box? Because it's more fun this way 