Tablets and smartphones already control your tv and home theatre and work with your DVR and encrypted EPG of satellite and cable DTH platforms. The Bone's features are totally redundant since you can not control a DVR with it, where as you can with current mobile offerings.
All of the other side by side stuff is totally antithetical to how the living room is actually evolving. A tablet or smartphone is superior for browsing, playing fantasy sports, whatever while watching TV or playing games. The proportion of the population that would want to dedicate a third of their main TV screen to that shit is non-existent.
Literally the TV side of it was designed in total ignorance. Par for the course for MSFT these days.