Today, BoxGods ask an interesting question. Do HTPCs need to be in extremly small cases? Well, no, not really. When you think about the equipment the HTPC might be replacing: DVD player, Stereo, maybe video recorder if you're going with a PVR setup, then the space taken up by the devices being replaced is probably greater than a small ATX case. So, why not find a nice (cheap) ATX case for an HTPC? Today they review such a case.
A case like the one reviewed would function fine as an HTPC, and doesn't look too bad at all. However, I think the biggest issue for many users is the fact that they'll have a PC in their front room. Do people really want that? Perhaps the real problem is that people don't want something that looks like a PC sitting next to their TV, instead opting for more stylish (and inherantly smaller) cases.