You're still going have a layer of terrible user interface where you're picking through all the kitchen-junk-drawer full of items that Microsoft has packed into this device. It won't be labeled "Video 1, Aux 1", true, but you'll still have to pick through every time you want to use the system. Probably end up being more of an interface problem, actually.
Power on, wait, skip special offers from Microsoft, no I don't want to update the console today, click to make anti-virus warnings go away, okay, now I can pick whether I want to play games or watch TV, TV, live TV or internet, internet, now pick the Netflix channel, and start watching! Hurray!
Yeah, that's so much better than picking "Video 2" and using the Netflix box.