Plus, people are catching on to the idea of watching TV on phones and tablets, which is going to be hitting the demand for second & third TVs around the house, for students etc.
Hopefully, people start catching on to the idea of just not watching TV much at all anymore. Maybe stream a show now and then, but there are just much better things to spend one's life on.
(BTW, I used to be someone building MythTV boxes to try and record everything, and participated in attempts to create a system out of the Mac mini, etc.... but, we've not had 'TV' (or cable) for a few years now. Sometimes when I end up at someone else's home or where standard 'TV' is playing... I can almost hear the brain-cells screaming in agony as they atrophy.)
My point being, that I think so long as the Apple TV can stream some video - which it already can - it kind of does what it needs to do. It would be kind of silly, at this point in the game, to try to add a dying medium/technology to it and encumber it with a huge display. That would be going backwards, IMO.
What I would like to see is the addition of apps, especially so something like Plex could run and allow browsing the video library on the central computer, etc.
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I can't imagine why Apple would consider wrapping around an ATV a complete TV monitor. While I personally refuse to own an ATV, I have plenty of friends who find it 'perfect' for their needs and way of life (ease of iTunes).
Absolutely! It's the perfect little media-hub IMO. Less than 1 watt... able to stream anything I throw at it. Able to mirror/display anything from any of our iOS devices.
I can even use it with my iPad to give wireless Keynote presentations... if I can sneak it away from the family.
The only thing I'd like to see added to it, in reality, is to run 3rd party apps so I could use something like Plex. Being able to easily browse the main home media library is about it's only current shortcoming.
Plus, the ability to, say, add a couple controllers and play all sorts of games and such would be a sure home-run. It would be so easy for Apple to do... I'm guessing they are simply waiting for the right time on that one.