If you decided on a WHS approach you would be able to do a number of things.
What i am personally doing is running a WHS which is running on a wireless 802.11n network. As i got my server box running in the next room where I can keep it cool and don't need to worry about the noise.
Since, it is attached via the network any PC in the house can access the files on it, and music and video files can be streamed directly from it. For HD videos you would want a good strong signal or to use wired Ethernet (you would plug the WHS directly into the router).
WHS, uses a technology called drive extender. Which is similar to RAID 0. You can choose which 'shares' you wish to duplicate and then those files are stored on a second hard drive. So if one hard drive fails you simply take out that hard drive and plug in a new one. No waiting for the drive to be rebuilt or with less performance (and rebuilding 8x2TB array would take a while I would imagine).
Lastly, unlike with raid you do not need the same hard drives or sizes. Say you can only afford 4x2TB and 2x1TB and 1 old 500gb hard drive. This would not be possible with RAID (afaik) but, works without issue in WHS. My only advice here is to install WHS to the biggest hard drive you got (do not worry it only takes up 20GB - not all of this is used)
WHS can also automatically backup any pc in the network and using its drive extender you can save a lot of hard disk space for your backups. For example, you have 2 PC's running windows XP. A normal backup would contain 2 Windows folders that are virtually the same, not to mention program files and other files/folders. WHS compares each and every file and if the file is already stored somewhere on WHS it just creates a 'shadow copy'. Which is basically a pointer file so hard disk space is saved.
The advantage of this is that not everything is duplicated. Only 1 copy of each file is stored and with your own files you can choose what is duplicated.
If the WHS drive itself fails then nps, just put in a new drive, rerun WHS setup and all your files are still there (your whs settings will need to be configured again but - you can always back the WHS database up.)
With respects to media sharing. I am using a free plugin for WHS called My Movies. If you have seen vista media centre you should understand what this does. It automatically scans your movies and puts them into a central database, I have 400 films on my WHS and it automatically identified 356, the others I had to manually add). Then any pc running media center (2005 or vista or the new windows 7) will get the proper library overview, with covers, actors etc.
This is really quick to do and works great. I can stream files easily to my tv downstairs or my laptop upstairs.
You can install an itunes server on it for your music collection too.
If you have not already ripped your music/videos to the hard drive you can do this automatically too, just needing to change over the dvd's/cd's when needed.
I decided on WHS because I have heard of raid arrays failing, raid card dying or raid arrays taking days (literally) to rebuild. You do not have any of these problems with a WHS setup. The only negative thing I can think of is that since you will probably be building a custom WHS hardware (if you do please ask about as there is some great intel atom hardware that is perfect for a WHS setup) is that you will in essence need a second small HTPC. As you will need something to actually stream the files from the WHS and play them on your TV. However, this can be a very small HTPC (unlike one that is needed to house 8+ HDD) as it will only need 1 HDD for the O/S.
This is preferable to me as you do not have a big ugly box, with big loud fans (to cool 8 HDD) in your cinema room.
In short I could not be happier with my setup. I have all my files stored securely on one central server that is very easy to administrate and the data is backed up securely.