Let me start by saying that I have owned an Apple TV since day 1 it became available. I loved the thing, I showed patience with all its problems, I converted all my DVDs to mp4 and then I also jumped on the rentals thing, hoping to see better quality picture on the movies I rent/own. Even with HD resolution I found out that Apple TV's quality was mediocre. Despite that I convinced myself that the quality was great... Two weeks ago my DVD player died, so I decided to get a playstation 3 in its place that would give me DVD, Blu-Ray and Games (I only play a game of soccer now and then, nothing major though). I also bought two Blu-Ray titles and when I played them on my PES3 I show the difference!!! There is absolutely no comparison between HD on Apple TV and Blu-Ray. The difference is dramatic. Blu-Ray looks sharp and AppleTV blurry. Artefacts are not existant on Blu-Ray...The sound is also much better (DTS)....After a couple of minutes I started asking myself what I have been doing the last 16 months, converting all those movies to AppleTV and enjoying mediocre quality...I then thought that the Playstation couldn't totally replace my AppleTV....I was wrong!!! I downloaded Nullriver's Medialink and in a couple of minutes I was streaming pictures, music and Films from my Mac to the Playstation! Streaming quality is excellent and there are no interruptions like with the Apple TV. try streaming a HD movie to Apple TV with a bit rate of 3500kbps....I stream movies with 10Mbit bit rate over to my playstation with no problems!!! (over gigabit ethernet). The AppleTV is also limited in the bit rates and formats it supports. The Playstation plays almost anything with no Bit Rate limits!!! The only downside is the interface (I find it ok, but nothing special) and the fact that it cannot play music and films bought from the iTunes Store...If that bothers you then stay with the Apple TV... I have made the switch, sold my Apple TV and enjoy real HD content on my Philips HD TV. I enjoy Blu-Ray rentals for 2 Euro pro disc and the discs come to me, I don't have to go to a video club. Here in Germany there is a nice service offered by www.videobuster.de that allows you to rent movies online. The discs get delivered to your home address... Overall I am very happy I got rid my Apple TV, I believe it is very flawed and needs to address the quality issues it has. Yes, I know that it's compressed content, but I don't care! Why should I??? I can get for the same prices much better qualty and If I want to keep a movie I like a lot, I can always buy the Blu-Ray disc.... For all other media types I own, I can play them without problems on my Playstation, much better than the Apple TV, and if I want to play a game, then the PES rules!