Interesting. A bit pricey but interesting. I was thinking about something like this a little while back when trying to get my MCE machine in the basement. USB was one of the obstacles.
I was trying to choose between replacing the tower case with an HTPC type one or just moving the desktop downstairs. I held off on a decision until I figure out how I want to handle huge hard drives (in case that will be an issue).
Now that I think about it I didn't need it anyway. VGA can be run (my current connection to the TV, not sure of costs though), for IR I have a zoned Xantech system so the MCE remote station does not need to be in the room, and the Gyration keyboard/mouse is RF so it doesnt need to be in the room either (assuming walls wont degrade it enough to be annoying).
Regardless, good to know there is another toy out there should it be needed.