Softmod isn't just for piracy. It allows you to install open source software like xbm centre (xbox media centre), an excellent media player that can do slide shows of your digi photos, play mp3, ogg, etc files from a folder, even play video files. All of this will be displayed on your nice large TV, without your PC.
You can install snes emulators to play all your favourite oldies.
Also, for the adventurous, install a linux OS to mess around and maybe waste some time.