I have a Apple TV 160gb and absolutely love it!! I think the new version is defiantly going backwards and really don't understand the thinking behind getting rid of the HDD. However.... Everyone is always saying that the wish the Apple TV had a larger HDD and that they had SOOOOOO much media that they want to store... So do I, apart from I don't find it an issue at all!! I have everything stored on a HDD in my macbook, which to be fair I have expanded to a 1tb and all I do is tell iTunes to sync everything to my Apple TV that is unwatched... I don't know about everyone else but when I have watched it, I really don't want it getting in the way on the Apple TV menu... If I want to watch it again I simply mark as unwatched and it moves straight to the Apple TV automatically, if I can't be bothered to wait for it to sync I simply leave my macbook on whilst it streams... I know this is opinion... but I think that this suits the devices a lot better, this system could easily work with a NAS on the network if you have even more media... Surely everyone doesn't want ALL of their tb's of media on their ATV to scroll through when all you want to find is something new to watch??