I am really struck by just how many really geeky, elitist, techno-snobs there are posting here who are more interested in bending the world around them to their shape, than in doing what a smart business -- like Apple -- does: They actually look at the vast sea of real customers, and create new products that will sell in large numbers. Apple's customer is not 'you,' Mister (or Ms.) TechnoGeek. The customer here is Jane and Joe Everyman... the same people now buying the vast majority of iMacs, minis, and iPods. And, from that view, that's me: Joe Everyman.
I watch video of all qualities, including really screwy VHS tapes from 10-years ago with lines flickering through the image. I also watch some hi-def, with most stuff being generally broadcast or commercial DVD quality. I watch it all, as I am really into the stories portrayed in these movies and shows, and care much less about the gem-like perfection of the image. If you'll go out into the middle-class neighborhoods of the world and talk to real families, you'll find a prevalence of this same attitude. "Quality" is secondary to content to the mass market.
You, Mister TechnoGeek, may have a home stuffed with leading edge electronics... 102 inch plasmas... gigbit Ethernet everywhere... dedicated rackmount media servers... whatever. I am proud for you. But, Joe and Jane are out here with a 20-inch TV in the bedroom connected to a 5 yr old VCR and a 1 yr old DVD player, and they have a 27-inch CRT set, or 52-inch rear projection set in the living room connected to a cable box, a 2 yr old VCR, and a new DVD player (not "progressive scan," either... the mid-priced one from Target). We see flat panel sets when we shop, and hear a few friends brag about them... we are talking about buying one. We have a nice PC in the corner or in the bedroom... or, we're thinking about replacing the old PC, and are aware of the new Apple products. We're 'hip' enough to use some technology, but we don't live it and breathe it. We are avid iPod/iTunes users, and iTunes store shoppers.
That all said, I now see Apple showing a little box that I can plug into the 52-inch set in the living room wiht one cable. And, magically I can now watch any video that's on our PC on that TV set... AND can control it all with a little simple remote control that works with the PC back in the bedroom. My response is, "Wow, that's cool!" And, despite my somewhat backwards appearance to the technology cogniscenti of the world, I actually do spend cash on cool grdagets from time to time... like that $350 iPod I own. I have that $299 sitting here to spend on something simple and cool like this iTV box.
Joe and Jane don't know that ElGato exists, and would never dream of trying to figure out how to start hanging peripherals off their PC and getting multiple doodads working together. They're just not into that sort of tinkering. They have real lives. And, they just want to plug something in, and instantly have it work. And, they want to just push a button or two, sit down on their sofa, and watch their videos of choice. No hassle.
Welcome to the next era of transitioning Joe and Jane away from real-time content and into the world of content on demand. Apple really did just fire the magic bullet by showing us this one elegantly simple end to end solution possibility.
If you don't get it, you're probably not in Apple's vast target demograpic for the iTunes Store or the iTV. I am. I get it. And, I want two of these right now... for the living room and the bedroom.