The thing is simple: if AMD can provide a cheaper, more powerful graphics card with HW-acceleration of VC-1/h.264 with open source driversm which would work out of the box.. they'd have a real killer in the geek-driven HTPC market. And keep in mind, that it's the geeks who are asked for advice by normal consumers on what to buy.
Bridgman, one more question I'd like to ask: what about OpenCL on the open source drivers? Do you have that feature in your release plan? I know that probably that would be done through Gallium. How do you think a Gallium implementation of OpenCL (on for example R7xx or even R8xx) would perform, say compared to the FGLRX drivers?