Thanks Mojo. That's pretty much how the WDTV Live functions. Like I said, it's like XBMX lite. XBMC is a bit smoother and has far more functionality under the hood. WDTV is a compromise that gives you XBMX-like functionality at a fraction of the price.
Quite a few of the XBMC themes have been ported to WDTV as well.