Missing the point
I think Arstechnica said it best:
"What I want, and what I believe the market needs, is a way to simplify the byzantine world of TV and home video. You can't do this by pretending that the rat's nest of cables, contracts, and TV-connected devices in all our lives doesn't exist. Apple's job is to tame this mess, not ignore it."
The job of an apple TV device thingie should be to seamlessly integrate everything in one central location and do so in a way that everyone can use, not limit what you can do for the sake of simplification. Sure it's simple enough to use but that's because there's not much there.
I mean really, a box with an hdmi out that can only play music off itunes? What are 'people' supposed to do with all their existing non-itunes content? Their cable/satellite feeds? Just use iTunes, not that big of deal?
I think 'people' don't need yet another device for your living room that only does a few things, we already have a bunch of those.
Some kind of simplification of an openfiler kind of approach, where you can hot plug drives in there seamlessly while being able to do decoding of 1080p (with potential for higher res..) and also being able to control all the other boxes in the living room so you can record off cable/net/freeview/satellite/whatever. Which is what techies have been doing for ages with various degrees of success. Simple, it is not, however.