Santa got me an Xbox 360 last Christmas and I love it, it's a great piece of kit. I have it hooked up to the main TV in the living room and networked to a Vista Media Center PC. It gets a lot of use for TV, music, photos and gaming. However, nothing's perfect, so here's my Xbox 360 features wishlist:
1: Gapless playback of music when used as an extender. This is a major annoyance. I have loads of CDs ripped on my Vista PC and use the Xbox as an extender to listen to them. I was surprised to find that the Xbox 360 has no gapless playback support, especially when it's promoted as a media extender. Try listening to Jean Michel Jarre or Pink Floyd with gaps between tracks..
2: Volume control when used as an extender. Again, like gapless playback, an extender 'what the' moment. When streaming music or TV from a Media Center PC there is no way of directly changing the audio output volume of the Xbox. By design apparently. You have to change the volume on your TV or hi-fi or whatever you have it hooked up to. Mad.
3: Netflix for the UK. Xbox users in the USA can sign up to Netflix and choose from thousands of movies to download. In the UK the range is very limited, to say the least.
4: BBC iPlayer support. How cool would it be to select, download and play iPlayer content directly from the Xbox interface. Nuff said.
5: YouTube support. See above.
6: Widgets. We'll probably never see a full web browser for the Xbox and I'm not sure I could be bothered with one anyway. What about web widgets though? Imagine a flickr widget that lets you scroll through online photo streams or a BBC news ticker.
7: Customisable tab order. Under the 'My Xbox' tab I have videos, music & photos which I never use but have to scroll through every time to get to the Media Center tab. It would be nice to be able to reorder and/or remove tabs.
8: Quieter fan. Man, the Xbox is noisy. I've put it in the cupboard under the stairs which, as luck would have it, is behind the TV so I could run the cables through the wall. All is peace and calm now. But have an Xbox whirring away in your lounge? No thanks.