GamesIndustry.biz - Xbox 360 first-party accessories line-up is revealed: "The wireless adapter is designed to allow the Xbox 360 to go online over a wireless home network, and will plug into a USB port on the box. The decision to make this into an optional feature has left many scratching their heads, as both PS3 and Revolution promise to have the feature as standard, but as well as being a cost saving exercise, using external wireless may also allow the system to have better reception."
Well that, and wireless G can handle streaming a non-high-definition DVD so long as nothing else is using the network, no gaming, no downloading and no surfing Big Boys. Reading an article on setting up a home network specifically for media streaming via Microsoft Media Center and Media extenders. It was pretty clear that to have a good home media network you gotta have wires. According to the magazine's figures G could handle quite a bit of music, and even some video, but only one stream of DVD data and god forbid you were streaming a DVD to the living room while your kid streamed music out to the deck while the wife streamed music to the garden. Stutter, stutter, freeze, stutter.
I think it would have been nice for the 360 to have had wireless capability, since gaming is just fine with B or G, but I understand why it doesn't. Mind you in the future the N will help the bandwidth constraint a lot, but a ethernet port or USB port would be how an N adapter was connected and the built in B or G would be a wasted expense again.
String the wires. It's not difficult, drywall works easy. Wireless is convenient, great for surfing the net, streaming music, and even gaming (though ether to the router is marginally better), but it's not ready for streaming high-definition movies, and that's a big part of the 360's media extender goals.