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I watch almost all my TV via iTunes for a variety of reasons. Apple TV has made it so much easier to access that content as well as all my content in my iTunes library via my TV. The interface is so easy, just what you would expect. The problem is not as much with Apple TV as with the video content iTunes sells. Until they sell video that is not made for the iPod, it will just look OK on a big flat screen TV. What's the point of an HDMI connection with iTunes content. I expect this to change in the future. Apple has got to start selling at least DVD quality video soon.
Apple TV completes the missing link in any home media hub. Connects seamlessly to an iTunes music and video library of any size. Don't let the size of the HD in the Apple TV limit you -- it streams over wi-fi seamlessly. A whole-hearty recommendation.
I got one of these for my in-laws, and one for my parents. Neither of them are tech-savvy, but both enjoy their Apple TVs very much. They don't use their Apple TV to watch movies, podcasts or listen to music. Instead, they both use it to watch their vast libraries of digital (or scanned) photos on their TV. My in-laws have a large iPhoto library and my parents have a large directory structure on their hard drive with photos. Both work well when watching the photos. It's turned their new 42" LCD TVs (both got new ones in the last year) into large "slide show viewers".
4.50 overall from 6 reviews
from $960 at 3 merchants
4.29 overall from 7 reviews
from $229 at 3 merchants