Futzing with Kodi updates, patches, updates to the OS, drivers, etc is all way too much to be considered ’smooth’ for most.
It only gets used for local media + radio, twitch and youtube streams though - I don't know about other services.
Joking aside, there is not much futzing around to do if you just go with LibreElec, and you can even buy pre-installed boxes nowadays.
My setup is like GP's, ie I play the videos on the computer, but what bothers me personally is that I have to boot windows to get the high quality streaming.
I've looked specifically at Kodi maybe a year ago and it didn't seem to support this. I'm OK with tinkering if I know it's actually possible to get this working.
For my use, this is much less friction than any searching and waiting around for torrents or whatever to download.
There's also the discoverability factor. Not following current movies / shows, I don't necessarily know what shows exist. So browsing through random lists and then checking if they're available to download from enough people that it won't take a week is way too much work when all I want is to mindlessly watch something right now.