I have a 360, and use connect 360 with it. It's okay, but the AppleTV will destroy it, for the following reasons:
Don't get me wrong, it's a great machine. I love mine, but it's just not quite up to the job that a decent media centre can do...
- Scrolling through over 1200 artists with the 360's software is crap. Rather than scrolling through everything very quickly, it skips every 10 to go faster when you hold the button down. Useless.
- It will only play Windows Media videos, nothing else. It doesn't even support MPG or MP4, let alone the Apple codecs.
- The fan noise is really irritating.
- One of your Live! friends will always try and talk to you when you start up the 360 just to play a bit of music.
- Doesn't work on as many TVs as the AppleTV, it's only got an analogue output (for HD, my TV only supports DVI, nothing analogue).
Don't get me wrong, it's a great machine. I love mine, but it's just not quite up to the job that a decent media centre can do...