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Wishful Thinking but from the rumored specs it could happen.
MS is always trying to get people to purchase their OS and other products with tie-ins. One of the features that could be pretty solid is the ability to steam PC games to your NextBox. One of the rumored documents talked about streaming from xbox to PC and I am thinking it should also go the other way around.

As for the nextBox being a media device, I pretty much already use it that way within my home. Actually I use both the Xbox and PS3 as one is in my bedroom (PS3) and the other one is in the living room(Xbox). Since both have the same types of apps like Hulu Plus, Nextflix, Crunchroll, Crackle, Amazon Prime etc. They both serve that purpose. PS3 gets the nod for Blu-ray while Skydrive on the xbox actually has proved to be pretty damn good.