If you are getting a PC, which performans all PC functions, which also performs specialized functions, you aren't buying a new computer just to get software. IIRC, Microsoft will only sell Windows XP Media Center Edition on Media Center PCs, to ensure guaranteed level of hardware quality. You may not agree with that, and I don't know that I do either, but so far as I am aware, that is their rationale.
As for your cheaper comment, you could argue that something else is cheaper than Windows (Media Center Edition or not), so I don't see the point of that comment.
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