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Yep, it's more like Media Center navigation than XMB.  However, MS did incorporate thing like CoverFlow and dynamic background (not sure if those features were in later Media Center, since I haven't play with Media Center in a while).

All in all it's a slick interface.  It's way better than the clunky Blade, if you think new inteface is terrible I don't know what would you prefer, XMB?   I like XMB for it sleek clean look but it's not really very easy to navigate especially when you are deep into selections.  Also people who are not tech savvy would have no clue to open up the side menu for more option.  My wife is always lost trying to used the PS3 to stream Netflix.