So I bought an Apple TV a year ago and have been quite happy with it. At first I was just using it to rent movies, but then I started getting into the habit of buying films too, and now I've purchased probably about 50 movies from the iTunes store. As the price of blu-ray players has come down significantly, I decided to get a Blu-Ray player to hook up to my 37" HDTV (albeit only 720p capable), and I bought a few blu-ray discs. The first one I tried was Aeon Flux, and let me tell you - the hype around blu-ray is real! I was immediately blown away. To confirm I wasn't just pre-disposed to like it, I decided to compare it to the version of Aeon Flux I bought on the iTunes store. I did this by starting both the Blu-Ray and iTunes versions at the same chapters (in several places) and then quickly switching inputs on my TV for comparison. My first reaction was that the iTunes version now seemed like some cheap copy of a copy of a copy... the color was all wrong after seeing it on blu-ray, the detail was missing, and I can only image how much better it would look on blu-ray if my TV were 1080p-capable. Same reaction when comparing Teminator 2, Casino Royale, etc. Apple TV is great for the convenience of having your movies available at a click, but for the prices they charge a blu-ray disc isn't that much more these days and the difference in quality is truly night and day. Now there's no way I can go back to low-quality H.264. Apple needs to wake up... consumers may be willing to sacrifice some quality and buy MP3s over CD (WAV) for the convenience of being portable and having the ability to cherry-pick songs from albums, but I don't think the same logic applies to movies... if you've spent $1,000+ on an HD TV you simply aren't gonna wanna watch movies in the iTunes format when compared to what blu-ray offers. For now, my Apple TV is going back to what it was originally intended for - renting movies, but even this is annoying since often new releases aren't available for rent until 4-6 weeks after it's online for purchase. But from now on, my purchases will be blu-ray only until Apple seriously improves the quality of the downloads. And I won't be buying another Apple laptop until a blu-ray drive is available.