Why wouldn't the average consumer be able to hook it up? We're not talking rocket science. You plug in the box. You run the setup app. Choose your cable provider and let it all finish.
As for the consoles, but a brand new Xbox 360 is going to cost about the same as the HD upcharge for one TV for a year (assuming you don't get the system on sale). It's less than you'd pay for a box if you were buying one outright (or lost/damaged one and had to pay for a replacement).
Why do you think it is laughable for someone to use a cheaper, more reliable and more user friendly option? When set to WMC mode, the 360 looks and feels just like a DVR. It boots directly to the guide and you can jump into live TV or play a recording. You don't even need to see the dashboard unless you want to fire up a game or an app like Netflix.
Yes there are other options out there that use other setups (ex MythTV) but WMC is stupidly user friendly and extremely straightforward.
As of Win 8.1 it is that simple.
Seriously, it will probably take most people more time to download the initial guide data than to do the initial setup.
If you can read basic instructions it works OOtB for most people.