Situational Awareness = Using events of the past and present to predict the future.
XM Weather is simply a tool (of many) that you use to build your situational awareness.
I lurked through the debate here about 'Glass Cockpits', but I think your question has a similar thread and I can't sit idle. Your success is directly related to your knowledge of the product's capabilities AND its limitations. If you know how and why a complex avionics system operates and are proficient in its use, it will help you. If you are not proficient and are ignorant, the system will be a detriment to efficiency/safety and a net negative. It will 'suck you in' and monopolize your cognitive process as you try to fumble through the multitude of button pushes/knob twists etc. I don't mean to insult you, I just don't want you to miss out on good info from a system with limitations.
XM gives you dated/perishable information that you can use to build a picture of the fluid weather around you, along your route and at your destination. I try to use all available information to figure out what the weather WAS doing, is doing now, and what it'll be doing in the future.
Prior to getting my official weather briefing, I Start (believe it or not) with the Weather channel and build a national picture, especially for multi-day/long trips. Then I look at ADDS for localized radar loops, prog charts, then go to the Area Forecast, TAFs, METARS, PIREPS, AIRMETS, SIGMETS etc. I also look at the Winds Aloft to build a temperature picture for icing prediction to back up later on the OAT gauge. Using the XM during flight, I back up and adjust the info I got prior to flying and make changes if needed. If you're flying 400 NM, why wait untill you're in AWOS range to find out that unannounced fog changed your plans....
I have used XM in concert with ATC to request vectors around a cell or two. You can be more precise when requesting vectors as opposed to just requesting '10 left'.
I have also successfully used the XM function to update destination and divert weather spots for multi state trips.
Even full blown on board weather radar is simply a weather avoidance tool.
Don't forget to use EFAS!!
Know your system, use it in VMC on IFR flight plans and work your way into more and more serious weather.
P.S. A few looks outside at the clouds/weather are worth a thousand weather briefs.
P.P.S. I Strongly suggest you get a mentor to bounce questions off of or shadow/assist on some flights. It will be a great enhancement for your skills and confidence.