I agree that it would be nice to have a device that fills that gap but until then I prefer the AppleTV to my other media extenders (even in its current state) because I can run XBMC and/or Boxee and view all of my entertainment easily and wirelessly if needed. My wife and I will also use the AppleTV to watch video podcasts, photo slideshows, and also internet radio.
Dropping the price of media would be nice, but will it be the newest and most desirable shows? If not, I doubt this price drop will have much impact.
Agreed on the preference of the AppleTV. Dead simple to use and the quicker convenience of starting a show beats the mini. I have an
TV on the 'family' tv. The mini's going to go downstairs on the new tv someday, but I bet I'll be the only one that uses it. Our parents who have seen the
TV are much more likely to buy one than a mini due to the simplicity of use.