Using only media extenders to distribute media

You might consider USB over Cat5 so you can put a local DVD player strategically. I plan to put a hub inside my sofa where I can connect gamepads/DVD player/ Joystck whatever you may need.
I think I've played 1 physical DVD in the last 6 months ;) It is so fast to rip a DVD to the hard disk that by the time the wife is ready to watch, it's already ripped and ready.

I have USB ports by my theater TV for gaming, but they don't get used much. Wireless controllers have taken over :( The only PC gaming I do is racing simulations... otherwise its Playstation :)

and to answer the question about gaming through your extenders... no way. There is a noticable delay in the best of circumstances. Won't work for real-time gaming.
I have found good results using MythTV for both PVR function as well as the DVD playback issues. Also has capability for games. The problems.... runs on Linux and is a royal pain in the a** to get operational but once settled in it has high WAF.

Doesn't use extenders per se but a true computer (or Xbox can be used) at each TV location. All media distributed via LAN
Correct... but they are constantly improving them which makes them worth the small amount of money I paid ;) I used to use DVDShrink but ran into a few movies that wouldn't rip reliably (I rip mostly my kids DVDs... which always seem very protected). I have yet to find a disc these two couldn't handle.