What other device are you comparing AppleTV's pricing to, exactly? Is there another device out there that uses 802.11n wi-fi to wirelessly stream 720p movies, photos, music (in formats ranging from MP3 to MPEG-4 to LPCM AIFF) from up to five computers with seamless onscreen, remote-controlled user interface integration with iTunes?
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There's nothing particularly cheap about a $3000 piece of machinery... but if that $3000 piece of machinery happens to be a car, let's say, then it does things that other $3000 pieces of machinery might not do.... and yet it's still dirt cheap compared to, say, a $42,000 car. But, to make my point, I'm willing to bet the $3000 car probably didn't come with heated leather seats, speed-sensitive audio, and rain sensing wipers.
Pricing is relative to features and benefits.
Totally agreed. However, a 5-cent video cable to make sure you can actually use the product when you take it out of the box is hardly heated leather seats, speed-sensitive audio and rain sensing wipers. It seems like people are so shocked and astounded we are finally getting a product like this that Apple could decide to NOT include a remote control and we'd have hundreds of users on here stating how justified that was.