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GREAT QUESTION! (although i would be using the PS3 version...), i was wondering this throughout the key note, no way am I getting an Apple TV when I have a much more fully capable machine already under my TV
 
Figured that.

But you can convert them to the correct format, no?

No, the DRM is just that- Digital Rights Management. It's a form of copy protection. It will prevent you from converting it to another format.

I suppose you could play the rental on an iPod and hook the iPod up with a video output cable to a TV tuner on a PC and record it, but that's just a lot of trouble.
 
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