Reasons to use XBMC, other than, "try it, it's awesome!":
1. It's open source, which is good for developers and users alike in that it makes information and source code available to developers, and free-ness for the users. This not only makes it free, but also customizable by anyone who cares to learn how
2. It's cross-platform. VERY Cross-platform. It runs on iOS, Windows, OSX, Linux, and probably some other stuff that I don't even know about.
"I only use windows, so why is this important?"
Answer: Because linux is also open-source you can modify it anyway you like, which means that the fine developers and users of XBMC have been able to create stripped down versions of linux that will run only xbmc and a few other essentials if you like in the form of a livecd.
This means that you can get more performance out of cheap, small, atom/ion boxes and uses them as dedicated HTPCs all around the house. It makes it feel like an appliance (think Tivo). It's also a little more stable than running on windows, from what I understand. (Not that XBMC is unstable on windows, but any OS running lots of software can be unstable.)
3. XBMC has a TON of different beautiful skins that REALLY change the appearance with very little effort. Also, the skinning engine in XBMC is so intuitive that practically anyone can learn to modify their skins however they like, putting custom buttons in certain places, changing labels, textures, etc.
4. XBMC can use a MySQL database rather than the built in SQlite database. This allows computers all over your house to draw off the same database, allowing you to resume watching something in a different room, keep track of what you have watched regardless of where you watch it, etc.
5. Rich plugin library. Because XBMC uses the easy-to-learn and open source programming language python as a basis for it's plugin system, it there are TONS of individuals who have contributed to the collection of plugins available.
This is arguably the best part of XBMC. A plug-in can be anything from a simple video streamer from websites like netflix, hulu, youtube, icefilms, etc... or it can be something as wild as PseudoTV, a program that pulls shows TV shows and Movies from your collection based on any parameter you can imagine (genre, year, air date, actor, director... anything that the smart playlists support ) and presents it to you like a cable TV viewing guide, allowing you to just "watch TV"... Prefer movies? Search "home cinema experience" ....music streamers for services such as Pandora, Grooveshark, etc... plugins to access these very message boards.... plugins to launch other applications on your computer, including Video Games and Roms of console video games (including awesome art and metadata just like the XBMC music and video library)...plugins that download subtitles for movies and lyrics for songs... So many.... sooo so many plugins...
6. Open Source, 3rd party software such as Sickbeard (which, if you are building an HTPC, you should definitely check out--really amazing in conjunction with pseudotv if you ask me)... support updating XBMC's library automatically.
7. Supports PRETTY MUCH ANY FILE FORMAT WITHOUT MODIFICATION... Got flac files? MKVs? ISOs? Mp4? m4a? mp3? avi? using h264? divx? What is it you want to play?
I have never found a file that XBMC does not play... seriously...it plays everything
8. If you have a feature that you want, you can request it, and the sick thing is that as long as it is reasonable there is a good chance someone will actually PROGRAM IT FOR YOU AS A PLUGIN OR CORE FEATURE. Search for Grajen's RSS reader plugin if this sounds too good to be true... I asked the forum, and I was given my wish!
9. Tons of remote options. Plan on using a Harmony One? An old universal remote you've got laying around? Would you rather just use your Android device or iPad/Ipod touch/Iphone? Search the forums and you will find a way.
10. The features just keep on growing. I've been around these forums for a couple years now... in that time, shit I couldn't have imagined has been implemented. I remember when hardware acceleration was a fantasy, or running on iOS was like "that will never happen"--But here we are.. with both of those features...
It's a one of a kind community, the most powerful HTPC software, amazing support, features out the yin-yang... The only other software that can even compete with XBMC is BASED ON XBMC'S SOURCE CODE! Boxee, plex, mediaportal... all good, but none would even be if it weren't for XBMC...
Whew... so yeah... like others said... it's free... just try it.