Yes, it was that way years ago. I still think the final incarnation of the

TV1 interface was the best yet for any of these little boxes. I'd love to get that version on the

TV3 hardware OR see it released as a new "front row" for Mac.
Apple is supposed to be "just works" and expert at making highly intuitive UIs. Our own movies should appear under "Movies". Our own TV shows should appear under "TV Shows". Etc. It is much less intuitive that all of our own stuff appears under a menu called "Computers."
While they are at it, I wish they would resurrect a few other features I really miss- like making the "Shows" field work again. For multi-episode movies like Star Wars, Star Trek, Harry Potter, Die Hard, etc, you used to be able to tag the "show" field with a name and all of the episodes would be consolidated into a single line item in the movie list. For example, tagging the "Show" field of the 11 Star Trek movies with "Star Trek" would yield a single line item in the

TV movie list called "Star Trek". Click it and it would then display the 11 movies. This yielded a shorter, easier-to-scan list of movies than the way it is now.
I also wish Apple would resurrect using each TV Show's poster art as assigned to each episode rather than seeming to pick just one for all episodes grouped as a season. I miss that old feature too.