I started to use a HTPC for movies about 1 year ago, when I figured out my 3 year old video card gave me a better picture than my $3K video processor. I have since then modified a M-audio Transit to a point that combining with the PC, the sonic quality is better than my heavily modified transport about $2K+.
Compared to the high end equipment, the value of HTPC is undeniable as long as you choose your components wisely. Yes, a pre-made silent PC is relatively expensive but if you are experienced in putting a PC together, you can get an utterly quiet PC for less than $1K, depending on your video card needs.
Imagine, if a new standard emerges, like HD-DVD or Blue-ray, all you have to do is buy a drive, hook it up and you are set, instead of having to spend thousands to replace your source front end.
As to DRC, I have yet to try it with my PC as the process looks to be very involved. I will try that when I have some time. The cost of adding DRC is relatively attractive - about the cost of a good mic and mic amp. Oh yeah, my time too
Mike