It seems that the OP is very close to MS's roadmap for the next 5-10 years. However i believe that the living room as the nexus of digital entertainment has diminished in line with the increased power efficiency of phones/tablets/ultrabooks etc, and the modern lifestyle in the western world.|
People tend to travel more for work and pleasure and, from my own personal experience, also tend to carry devices that connect them to an app store and their digital libraries in a manner of seconds. So you could argue that the large majority of 'digital entertainment time' is spent either outside the home or in the home but at various other rooms. If MS manages to make inroads with their portable range (not looking very positive at the moment Windows phone had 2.6% market share in US last quarter) then i would argue that it would have a very positive effect to their under the telly box. Otherwise people will stick to the services they tend to carry around, Google/Apple/Amazon.
PSN:lumulata, NN Dollodon