JohnF

Personally, I can see that in the long term the importance of the XMB will deminish as Home matures.

I think Sony will eventually use it as the prime mechanism to access both local and PSN content.

Imagine booting the PS3 up into your own 3D apartment and having access to all the functionality within XMB but in an interactive form.

I think Home will bring an extra dimension to console and will be a key descriminator.

To investment so much time and effort into it, and also provide it for free, is a clear signal that they have bigger plans for it than they are letting on.