FWIW my current "entertainment device" mix is:
ROKU (hooked to the TV via HDMI, and the stereo via analog sound).
Cheaper 32" LCD (720P) TV
Used stereo, hooked up to both the analog sound outputs of the ROKU and (via a manual audio switch box) the audio output of the TV. This means that I can either play anything on the stereo that is currently being watched on the TV (no matter what the source, even OTA TV works), OR (by flipping a switch on the audio switch box) play the audio from the ROKU even if/when the TV is off (the latter option is great for ROKU audio only channels).
"Outdoor" (currently physically indoors) UHF antenna + signal amp for watching OTA DTV. While the antenna hasn't yet been physically mounted outdoors, the larger antenna size (vs a traditional indoor antenna) gives it much better OTA DTV pickup (useful when you live a bit in the country).
Combo DVD/VHS player, hooked up to the TV. This lets me watch traditional NetFlix disks, my own DVDs, and even my older VHS library.
A cheap "Acer" netbook (XP), hooked up to the TV via the "PC" (VGA) input (and audio cable from the laptop's built in sound). The laptop has been configured to stay up (and not "sleep") when the case is closed, and also configured to output to the external "display" (the TV). It is controlled by a trackball and external keyboard, hooked up via USB. I don't use this option nearly as much as I expected I would, but it does let me watch (on the TV) anything (including basic HULU) that the laptop can stream. And since I have the option to get stereo sound for anything currently watched on the TV, I can even get the stereo's much better sound (vs the TV's built in sound) when streaming video to the TV this way!
Refurbished X-BOX 360. Not really a video device (although it could do streaming video, if I wanted to shell out the money for the "Gold" X-Box live). However, it clearly is an "entertainment" device. And like the other devices, I can see it on the TV, and also have the option to route the sound via the stereo (which makes for some really nice sound when playing video games).