I still use my 1st gen. ATV as my music player. The combination of analog audio outputs and enough local storage for my music library is a winner.
Using this device, I can leave my computer off and sit on my patio and play music through my receiver's zone 2 amp (requires analog input) and control volume and music selections from the Remote app on my iPhone. It's brilliant!
This is the reason my atv1 (actually two) are still used on a daily basis. I updgraded to a 500gb hd, and have my entire 110gb music library loaded to it. In addition to using zone 2 feature on receiver for outside listening, I have three airport express's placed throughout my house to form a relatively inexpensive whole house audio system.
I'll be bummed the day my atv1's crap out on me. I'm probably in the minority, but I prefer to have local storage for my media versus streaming from a computer I have to leave on. I can't believe OP found a wal-mart with two unopened atv1's...they've been discontinued for years.
By the way, on a related note of whole house audio/atv/airtunes/airplay...I picked up Griffin's new "Griffin Twenty" last week. If you have older generation airport express lying around that you've thought about using with some speakers you also have lying around - but didn't have a way to power them - the Griffin Twenty allows older generation AE's to plug right into the Twenty to power those speakers you wish you could be using. The Twenty has a 20 wpc amplifier, while not a power house, it is no weakling either. The Twenty can be used with new AE's (or other sources), but in case of newer AE's, they can't plug right into the Twenty's power source.
In any case, it's a bit of a niche product...especially considering bad timing of designing to fit previous model AE...but I can attest to easy setup, looks and sound. Sorry if this comes off as a bit of an advert, I am not affiliated in any way with Griffin...just passionate about music...and using my "old" atv1 to make it happen.
Cheers!
http://www.griffintechnology.com/twenty