After recently installing the update on my laptop, I can see where the problem may lie. It takes an install of Flash on media center in order to work.
Internet TV is not as robust as advertised and is very similar to the Extras that were introduced in Media Center 2005. Think BBC iPlayer, but not as good.
Overall, I still believe in the Media Center platform and I was excited to see the ban lifted for OEM Cablecard requirements, but there are still problems that need to be resolved.
One: You have the option to sync through Media Center, but not if you have a Zune.
Two: Partners are dropping the platform left and right. The United States National Public Radio for one that removed their extras channel last year.
Three: Lack of extender support from third parties.
Chris Lanier makes some good points about the platform over at the green button.
Now Google is the new kid on the block, and unlike Apple TV, I think it may make some inroads. The bigger question is how will Microsoft respond to this. Will they see it as a threat, and move to compete? Will they sit back and let a competitor take another
chunk of market?
In the meantime, I am watching TV through my Xbox and enjoying it.