Here's my problem with streaming. If you have a great internet connection you STILL get hiccups. If you have an average connection, a mere 5 minute cache would solve 90% of the problems.
If you have any sort of wireless or lower connection and want to view any HD content such as 720p or 1080p, you are pretty well screwed.
So. To the extent it uses "streaming" it should have large cache. Like 30 minutes to the full length of all content you want to view that day. This works best with a download and via token scheme. Some tokens are valid for a single viewing (inclusive of rewind/review). Some are 3 day "rentals". Monthly, perpetual, whatever.
I don't like LIVE streaming. I have a place with great internet and FiOS still annoys me as compared to cable or satellite. I have a place with DSL "fast" and it is nearly unusable for streaming to the point even the apple events are choppy at times, a month later. Wireless or dial-up only? Don't make me laugh. I have one of those too.
Cache. Local stored content. A hybrid between Apple TV 1 and Apple TV 2. Please. Thank you.
Rocketman
Agreed. Who has the speed to download anything decent, unless you are ok with overnight delivery for the next day's viewing.
Apple seems to be putting a lot of their future into a download world that not that many people seem to have access to. I sure wouldn't give up DirecTv for a nerdy, slow alternative.