I'm sorry to irritate you Dakota81. My point of view is not the one of a user, although I do video edition. I used to design graphics cards (with video overlay) and now I design motherboards. I have been involved with MPEG encoders and decoder chips as well. Can you tell what encoder is used on the WinTV PVR? I'd be curious to analyze its specs. Besides the marketing claims, a full hardware encoder still does require overhead, in addition to the 5Mbps that the Mpeg2 stream has to carry over the PCI bus.
I understand that you did not like the AIW9000. The AIW9000 Pro is not what I call a late design. The good designs start with the 9600, with a newer generation of encoder hardware. Yes you're right, the TVWonders are to be avoided.
As the hardware decoders disappeared when the system power became high enough, the same fate happens to the encoders. The reason is simple, some portions of the algorithms are fixed, some others are not and can always be optimized and improved for a better image. The partial encoding of chips like those used on the AIW (or Matrox Marvel, or the GeForce one) applies to the fixed portions of the algorithms. A hardware encoder is a chip where the functional budget is limited, by its production cost and by its useable silicon area. Another difference, bugs can be fixed on software algorithms. With hardware parts, you have to live with the bugs. Believe me, there are bugs in these chips, and a good portion of the software overhead is to handle these bugs.
I recently recommended a WinTV PVR to a friend and he is very happy with it.
Cheers.