As a bonus, you don't have to convert anything.
And that's the biggest bonus imho. Most people will watch pirated content on XBMC (torrented TV shows etc) and transcoding everything is pretty annoying.
http://lifehacker.com/355281/dvd-rip-automates-one+click-dvd...
http://lifehacker.com/344188/get-only-the-posts-you-want-fro...
I would suggest subscribing to the type of posts you like the most by tag.
My recommendations for tags would be:
#hivefive/ #hivefivefollowup
#feature
#downloads (you can specify which OS, see link above)
#featuredworkspace (I like them, you may not)
#featureddesktop (again, I like them)
#howto
#diy
There are more I can't think of right now. I definitely agree that the overall quality of LH has declined, however HN and LH are still my number one and number two sources of tech information on the web and I typically check both multiple times a day. Some of the best tips and software I use comes from LH - Dropbox tweaks, XBMC, CCleaner, BitTorrent tips, Launchy and many, many more. Check out their recommended bundles of apps also available for Windows, Mac and Linux, e.g:
http://lifehacker.com/5562864/lifehacker-pack-for-mac-our-es...
http://lifehacker.com/5713510/most-popular-free-mac-download...
Converting a two hour HD movie sucks for both time and storage. XBMC can play back pretty much any format natively.
Huge time savings for people with a large video library.