Beyond TV buffers what you watch on live TV to enable pausing. That's why the channel changing is slower than just changing channels on a regular TV - you're actually about 3 or 4 seconds behind "live TV".
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Second, whenever I change the channel, I can't rewind and watch whatever I had just seen. For example I watch 20 minutes of channel 30, and then change to channel 31, I end up losing the 20 minutes on channel 30.
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This is also how BTV works. If you're watching live TV, its automatically recording everything UNTIL you change the channel. You can rewind for about an hours worth of TV from your last channel change. But once you change the channel, that buffer is gone and it starts on a new buffer for the new channel.
You can record one channel and watch another with a dual tuner card (or record two shows) by either the record button or schedule the show to record.