This blog has been pretty quiet for a while since we've been busy doing the last push getting the "New Xbox Experience" polished and ready for release later this month. The new UI is pretty cool and is a nice break from the "Blade" interface which I've always thought was too web'ish (and very flat coming from the green 3D space on the original Xbox).
As for functionality, I'm the most excited about the Netflix integration and the ability to install games to the hard drive. Both of these features have been written about elsewhere, so there isn't much need to go into detail here. But they will definitely improve the entertainment and gaming enjoyment people experience from their Xbox console.
And since the whole "Avatars" thing is a big topic as well, here is an Xbox rendition of myself.