Lots of people (well, some ) archive tv programs & hd will play a bigger part in this as time moves on - there are already quite a few legit sources.
Video editing, processing & encoding is the main reason I've just bought a Q6600. You mention xvid; aside from transcoding for portable devices with low grunt or standalones, why still use xvid?
I doubt 90% of PC users do a lot of taxing video processing, but I imagine the proportion of users with high end machines who do is significant. I'm less sure about typical OC'ers, as I get the impression they're mostly gamers.