I have thought that it would be cool to make my own video playlist of HD concert footage and/or music videos from Palladia or HD theatre to have playing in the background during parties. Instead of just playing an entire concert (and commercials, etc.), I could make my own HD video music channel (commercial free of course!)
You and I think that is "fair use" of the entertainment you own and pay for, the content providers (programmers) don't agree, and that drives the features of the equipment we get, or equipment that is available.
Yes, the content providers should NOT have to put up with people stealing their service, i.e. distributing copies over the internet. At the same time, the cosumer should NOT have to pay for the same content 2 or 3 times because they want to use it on a different device, or be restricted to the providers intended use only. e.g. having to load recording after recording and que them up to the points you want, to do the thing you just described.
HTPC can do all that you talk about, but right now there is no practical way to record HD on a HTPC, all the service providers have refused to open their systems to allow equipment for HTPC to work with the service. There are a few expensive work-arounds that aren't the best, but it can be done.
You'd think the industry would meet the customer half-way, design to allow fair use but protect against illegal copy/distribution. Instead it seems they are only interested in designing to protect content for limited use and force the consumer to pay double or triple to re-use it.