If they had announced 720p downloadable content on iTunes at the same time, then I think it would be a killer box. As it stands it's a wait and see with me.
I think its great, as unneccsary of a device that there is, i will have one for sure. Right now the PS3 is my media hub since i can stick an SD card with my 1080p videos on it to watch on the 1080p TV instantly.
I think my only concern with the Apple TV is its limited to 720p output. But shouldnt be too big a deal, because from here on out instead of having to dump to my SD card for the PS3, i can just stream it live from the Apple TV. Music with a visualizer will be nice (not sure if it has a visualizer or not).
But im in love with it and was in love with it when it was first shown, even though back then it wasnt HD "your big , flat screen TV" -Jobs.
Also, being able to just plug in any USB device with content on it, will make it nice for portable storage or just watching videos easily without streaming.
ANd with the new Airport Extreme that has a USB port on it, you can have a network drive accessable to any computer on the network at 802.11n speeds that you can host all the videos on and watch them on ANY Mac in the house as well as the Apple TV. How awesome is that?
I like it. For me, it would be a must have if it had some kind of built-in DVR capabilities. I'll have to do some research before I commit (apple tv, mac-mini w/ front row, miglia, myth tv, etc.) Though I use a few OS's, OS X is my preference, so I think that'll probably be part of the equation.
the apple TV has one huge problem that is being pointed out by the European press and that is that it only downloads video and other content from iTunes. In Europe there is a HUGE anti-trust suit going against apple because of their DRM on iTunes and they are going to lose big time just like Microsoft did with Media Player. If the AppleTV had been a true media hub you could stream to from anywyere it would have been absolute genious and it would kill the competition. but as long as it's proprietorily linked to iTunes it won't fly very well.
Another interesting point for all the apple fanboys out there: a comparison shows that apart from the touch screen and one other minor function all Windows Mobile capable phones are already doing what the future iPhone is projected to do. If you just look past mr. Jobb's halo of disinformation you realize they are all the same.