This remote is a slick piece of kit, and it's very easy to use. However, having used it for a couple of days I am left wondering how essential it really is. Sure, I can navigate through TV channels and the XBox 360 at the touch of a button, but since it doesn't have an AV button on there I still have to use my regular remote to get to the console screen in the first place (making the TV side of things pretty useless).
If you are considering this item, you probably use your 360 as a DVD player on top of a games console. If this is you then I would recommend the product; it puts a stop to fiddling around with the controller and speeds up the whole process. This is especially useful for those with the HDDVD drive add-on (probably why they included it in the kit).
The bottom line is that if you don't watch DVDs on your console too often and can make do with the controller, then do so. If you're a gadget freak like myself and want to make your life ever so slightly easier, then go for it.