"Encroach" makes it sound undesirable. If you don't like it then don't buy it. If you like it then it assists, not encroaches. I don't have one but I do use my PC, Xbox 360, and PS3 as media devices (e.g. stream Netflix and Hulu).
Plenty of people, myself included, thought Apple was crazy to go into the smartphone market. Look where that got them! Now I'm thinking they'll be crazy to go into the actual TV market but I've been very wrong before. I do think the market is ripe for a streaming provider bigger than Netflix, someone who can twist arms to get better content.