After reading what that exec had to say, I feel like I have no other choice but to give up on the hope of the Apple TV. I love the concept of what they do - moving all your video and audio files wirelessly to your connected device, but they are barely capable of this currently and it seems and they won't be improved materially (through hardware) anytime soon. I own two Apple TVs currently (as well as 2 iMacs, 2 MacBook pros, an airport extreme, and have purchased 5 iPhones - all within the past couple years) and was hoping to replace both existing Apple TVs and pick up one or two more (for a total of 4 new devices) if they did a hardware refresh. Not anymore.
I officially quit caring about the product as of today, given the comments in that interview.
I think our best hope is for some competitor product to come along which has similar functionality. I will pick that device up instead (time to restart my research). Further, I will likely slow and possibly halt all future video purchases from iTunes (movies and television series) which I had been making in anticipation of a newer and more fully capable Apple TV device coming "around the corner" over the past 2 years. Since the iTunes content won't be playable on non-apple devices, I don't see any reason to keep buying downloadable content from Apple any longer.
I would like to pick up an iPad for a host of reasons...but a primary reason would be to watch movies and downloaded television programs, which would have come from iTunes. To be able to play any of my electronic files anywhere in my home on Apple TV, or on the road with my iPhone or preferably a future iPad purchase would be fantastic. I see the Apple TV as an outdated and essentially "broken" device in the chain that will, at least in my case, absolutely limit the amount of electronic content I will be willing to buy from iTunes any further. It will also, in all likelihood, keep me from buying an iPad since watching video on the go would be a primary use for one in my case.
No apple tv update = no more reason to buy media (video at least) from iTunes.
I'm disgusted.
We're stuck with a 3 year old semi-p.o.s. with LOADS of untapped potential that just isn't ever going to be fully realized it seems. While I haven't had any of the connection or dropping issues people on these forums seem to regularly experience, I certainly have noticed synching issues after having used fast forward or rewind on HD video, suggesting that the hardware is struggling to keep up. I frequently have to get entirely out of a movie/show and then go back in just to get the video and audio to work properly again.
The one thing that I have really marveled at since switching all my computing over to Apple products is that they "just work" the way you expect and want them to, solidly, with few rare exceptions. The Apple TV does NOT fit this profile. I can't help now but to change my opinion of it as a cute toy, but it is definitely not a solid product. I also would not suggest anybody bother purchasing one if they are thinking of doing so.
If Apple can't get its hardware updated on this thing, it's just a waste. And so is planning for future television and movie downloads from iTunes to feed it.
p.s., Sorry to sound so negative here but I really am severely disappointed that the Apple TV won't be made into something more than it currently is. I will probably still pick up a new MacBook Pro if the upcoming refresh seems worthwhile, I will certainly pick up a new 27'' iMac quad machine *after* a replacement is found for the ATI 4850 (it is over a year old), and will probably buy 2 more iPhones if they have speed boosts - but then my spending on anything Apple-related will probably come to a very, very long pause.
Not refreshing the Apple TV hardware is a huge mistake not just because they won't sell as many Apple TV devices, but because it will also slow the adoption of downloadable video, will call into question purchases of home network servers for distribution of electronic media, will limit the need for "cloud" storage of your electronic media (why a server farm in North Carolina?) and will handcuff one of the strongest (though not all of the good reasons) to buy an iPad. Dumb, dumb, dumb.