There are just so many things both consoles do that make Apple TV look bush league.
We'll count them off
1.
The 360 and PS3 can play your content with DLNA media servers (in the case of the 360 start with Windows Media Connect but other servers can do it too).
If we're talking about the early push by media centers into the home, or about Consoles being sleeper-media-centers, than this hardly seems like a major selling point. How many people with a console suddenly "discover" that they can use their console as a media center AND have a DLNA media server in the back room? If we want to change the discussion to "The best money can buy", we can do that, however I won't argue the Apple TV is worth much in that discussion. It's obvious that the Apple TV is aimed at people that don't know what a media center is, which is the audience I thought we were talking about.
2.
You can also plug in your iPod or other PMP into a USB port and play content from it.
I was not aware of this. I must give it a try. Not that it would serve me personally all that much. An input switch on my reciever switches the source from XBox to AirportE, at which point I can use my iPhone/iPod touch to remotely control my computers iTunes content from anywhere in and around my house. Wired technology is so last decade

Still, if a friend comes over and insists on playing a song, this would serve as a convenient alternative. But is this really a key feature of a media center? I want my media center to stream my media library. My MP3 player is not where my library is, my computer is where it is.
3.
The 360 can remote display content from your Windows Media Center PC, which opens it up to playing back all sorts of content including live TV tuners.
$5 says that 90%+ of all the people buying Apple TVs do not have a Windows Media Center PC setup. And why would you take your paid for cable channels, plug them into a paid for TV tuner, in a paid for desktop, steam them to a paid for XBox 360, to be displayed on a paid for TV? Do you know how much those little boxes that take cable signals and stick them on your TV are? I could sell a shoe for one, ASSUMING your TV doesn't already have the ability.
Perhaps those with a WMC PC already set up would find that feature really useful. But then they are also unlikely to have a vast iTunes library setup. Tell me how I can easily move my iTunes content or movie library from my OSX machine to my 360 without hacking it up. This also seems like a nice feature, but can't possible "blow" the Apple TV out of the water. It trades iTunes for WMC, how helpful is that?
4.
Both the 360 and PS3 do Netflix and both already have their own content stores not unlike iTMS.
Ugg. Don't remind me of my XBox 360 Netflix experience. Did you know they don't have a search on that stupid thing? I scrolled through every single last show looking for the one I wanted and couldn't find it. Do you know how I finally found it? Whipped my iPhone out, opened up my Netflix app, searched netflix for the show I wanted, and added it to my instant queue. THEN it showed up on my XBox. Heaven help those that don't know how to piece technology together as well as I.
Also, these are not points that help the Consoles. You just pointed out two areas that the Apple TV has, and does better. So these are counter points.
5.
The consoles are also both 1080p.
I'll give you that. However where do I get 1080p Content in the XBox 360 ecosystem? Larger numbers aren't a selling point if I can't take advantage of them.
6.
The PS3 can surf the web.
Really? I think we both know you are reaching now
And I'd say there is something special about playing physical media, as Apple TV can't do it. You can fire up the latest Blu-Ray release on your PS3, not only can't Apple TV do it, no Apple product can.
I'll admit, that is nice. However most people with blu-ray libraries already have dedicated devices for that. And if not, a quick trip to Amazon shows dedicated blu-ray players can be had for around $80 these days. Oh how times change...
One huge advantage of the AppleTV is price.
$99 vs $199 for the
cheapest XBox 360.
Now add the cost of "Gold membership" subscription service which is required for services like netflix, and the price goes Higher.
It seems to me that for consumers looking to enter the media hub age, that the AppleTV is very competitive. Sure, if you've invested in a large Blu-ray library and don't have a blu-ray player than the Apple TV can't help you. If you have a DLNA server in the back room you can't connect to it, and if you have a desktop with a TV tuner you can't stream it. But I don't personally believe that those are huge draw backs for the average consumer, which is what the inexpensive $99 price point AppleTV is aimed at.