You know, I was so psyched about the iTV back during the Media Event, and I was hoping that they would include some kind of optical drive in it: at minimum a DVD player, max a combo or SuperDrive. I wanted the AppleTV to be a packaged complete solution for digital entertainment on your TV. I am not trying to undercut the coolness of streaming from my computer to the unit, but with only a 40GB hard drive, it just won't hold all of my media - I will have to pick and choose, and eventually, take some material off to make way for others. I feel that for $299, that it's not a good compromise. Right now (albeit, not at HD resolutions) I go through s-video and digital audio into my TV/audio receiver from my C2D MBP, and can have EVERYTHING on the TV with out compromising. I just can't see what the Apple TV is going offer to do that my computer can't besides 1. convenience and 2. HD video (which yes, is an important step, but not worth it IMO). I was hoping that the USB 2.0 port on the back was indicative of being able to attach a hard drive or an extrenal optical drive, but it's just for service access; no end-user features are indicated for it at this point.
I guess I will wait and see how this evolves... man I wish it had an optical drive! It could have been the ultimate Mac-Lover all-in-one multimedia solution, but it's only halfway there.
I was a hell of a lot more excited about the new Airport base station, to be honest.