I think the reason there is a lot of anti-bias towards this product, is because people were/are uncertain as to what this product can really do.
I think the specs are pretty clear. Apple TV connects to iTunes and plays all of your MP4 video. Max resolution is 720p. I think people are upset because that is ALL it does. I certainly expected a more full-featured solution along the lines of the various UPnP network media players out there - but done right. I expected more formats to be supported. The user experience looks great, but the lack of support for anything other than MP4 is a deal-breaker. I don't think people are "uncertain" about what Apple TV does. I think they're just disappointed that it doesn't do enough.
In fact, the only plus it has over the Mac Mini, is the connectivity options - if Apple were to put a direct HDMI connection into the Mini, not a lot of people would buy the Apple TV - I for sure would not.
I disagree. Apple TV is
not a computer. It's a consumer electronics device. It is optimized for video playback. While I haven't disected a Mini and Apple TV side-by-side, I would bet that the Apple TV does a much better job of handling video playback than the Mini. The Mini has all kinds of other background applications running. By allowing the user to install software (on the Mini), the system becomes less stables, more prone to a potential crash, etc. Apple TV, being a closed architecture, can do one thing and do it very well. I'm not suggesting that one shouldn't connect a Mini to one's TV. However, I think by dragging the Mini into this debate, we're comparing apples to oranges. They're two different things.
If they did add a DVD player, the market share of people who go for a Mac Mini, would buy this product instead, and that would hurt sales for Apple. As a result, I still see it as a bit of a strange standpoint by Apple to include a HDD, as this almost begs for a DVD drive! I'm sure Apple wanted to put a DVD drive in, as this would have increased it's appeal 10 fold, but as for the reasons pointed out before, they couldn't.
I don't think Apple wanted to put a DVD drive in it. Just like they didn't want to put a CD player in the iPod. Apple recognizes that the future of content delivery is electronic. No hard media. That's the model that works for the iPod and they're hoping to replicate that with Apple TV.
As for the Mini market, there may be some people out there who are buying a Mini for their home entertainment system, but those people are a small percentage of the market. Seriously, you say that by adding HDMI to the Mini, no one would buy the Apple TV. I think you're completely wrong here. Many people would/will still buy Apple TV because it's
not a computer. It requires minimal effort to set up and isn't as intimidating to the average consumer as a computer. It's a device - and therefore not as complicated. The same goes for Apple including a DVD drive in the Apple TV. The majority of people buying Minis aren't buying them for their entertainment centers. They're buying them because they're a full-fledged computer, a replacement for their old Mac or PC, etc.
By limiting themselves to MP4 on the Apple TV, Apple has alienated a lot of potential customers. They should not ignore the wealth of content out there in other formats. This isn't going to change for a very long time. Why not broaden the appeal of the box by supporting more formats? Apple wants to grow their iTMS revenue. Video will be more lucrative than $0.99/song. Apple doesn't want Apple TV customers getting video anywhere else, be it on DVD or ripped from a DVD. I understand their strategy. However, I think it's flawed. If Apple TV included a DVD player, customers would still buy DVDs. Apple is trying to change the way people obtain content, so providing old-school hard media support would undermine those efforts.
Finally, regarding the hard drive, they included one as a cache. The user can transfer conent to the Apple TV and not leave his or her Mac running. Simple.