Lol. 360 won't even play AAC audio from my NAS thus rendering my entire iTunes collection unavailable for 360. PS3 has no problem.
And let's not even get started on blu-ray, DVD upscaling, MP4/AVI/xVid/DivX playback...
I agree, the 360 is not a very good media center. The number of formats that play natively on there is lacking. It even renders PlayTo from W8 pretty much useless. Some like the Windows Media Center Extender on there, but I never cared for it, very slow.