I cracked this out of another article because I thought it should be highlighted:
The AppleTV is basically a nice interface for iTunes content - I bought one, I like it, I even have another blog all about it - AppleTVhacker.com. But it isn't truly a replacement for a DVD player at any resolution. I see the ability to play downloaded TV shows as a bonus feature, the downloaded movies don't look as good as DVDs (but WILL play back on iPods & computers, so that is bonus), and the ability to see my pictures in high def on the screen is also a bonus. But in the end, I see it as a supplement to, not a replacement for, a high def DVD player (or even a regular DVD player). If version 2 had an optical media slot and played 1080i footage at full res, we'd be talkin'.
I think Apple has lost a significant market advantage, however, in that they STILL don't have downloadable high def movies - check out this article on the 10 minute 720p Ratatoille - download and watch it, and imagine that quality on your HDTV. That plays, right now, on my AppleTV. But I can't buy movies that resolution and quality. Get with it Apple! At $300 to play downloadable 720p movies, that'd be a viable contender against $500+ HD DVD & Blu-ray players.
But now that there are options that look better and cost LESS than AppleTV (under $300 for Toshiba HD-A2), with a MUCH wider range of movies...AppleTV's window narrows quickly unless they can get LOTS more content available for sale, and also at higher resolution to make a compelling case. I've bought 3 or 4 movies online, mostly to doodle with or so my neice/nephew can watch, but that's about it - I don't plan on buying any more. I DO buy TV shows (season pass to Lost, episodes I missed of Battlestar Galactica). YES, I could download high def freebies via BitTorrent, but that's more time and hassle than I want to deal with - and then they wouldn't play back on my HDTV via AppleTV anyway, which was the point. Feh.
IF Apple were to be able to:
-get MANY more studios and movies available to download
-AND get them available as 720p as an option
THEN AppleTV could have some more relevance. Of course, that isn't entirely up to Apple, the studios have to release the content in those formats.
But in terms of competing in terms of image quality, we'll have to wait for some future version - according to Apple, this unit can't do 720p at any better than 25fps - so that rules out "true" HD res for broadcast TV shot at other than 24p.
AppleTV 2.0 - 1080p/i capable, 120 & 250 GB drives, can purchase straight from the TV with an iTunes account (that last could be done today with software updates).
