All apple needs to do to win this race is open up appleTV to run apps. This would allow things like AirVideo. AirVideo allows playback of multiple video formats, allowing multiple video formats would be a game changer for appleTV. This is the reason people like Kodi, Plex, XBMC etc.... also a reason the other players are ranked higher then the appleTV.
"Multiple rumors this year hinted at a refreshed Apple TV hardware with App Store integration, Bluetooth controller support, and more, but those rumors have yet to pan out."
The current generation of Apple TV will
never run apps/games. It has a SINGLE core A5, more similar in performance to an A4. It already does all it is designed to do, never intended to open to apps. It has just enough to stream 1080p 5.1DD content & AirPlay. It won't do games well at all, won't be able to do current apps, it would have similar limitations as iPhone 4 in that respect.
I wouldn't expect Apple to open up to other "airplay" type formats outside of apple's own AirPlay, just as I wouldn't expect the google thing to allow apple AirPlay.
Netflix has content without commercials, but, not all the content you could get with amazon or hulu plus or cable TV. Personally, I'm unwilling to pay for content with ads (hulu plus)...make it ad free and I might consider it. (Anyone old enough to remember how cable TV started out? You were paying for TV, so you got it
without commercials. I was out of the loop for about 10 years ('90s), so, not sure when they started adding commercials back in, but, that's just bull crap.) ...Similarly, don't expect every format to be compatible with every other format, not going to happen.
Who cares!! Still does everything I need to do!
Exactly, it does all it was intended to do...stream 1080p 5.1DD content & AirPlay. It wasn't built for games or apps, that's what other devices are for.
Yes, Apple is surely working on one or more new TV innovations, but:
1) we won't see new hardware before next fall at earliest.
2) it will be something totally new/innovative, will take advantage of new hardware and not compatible with old

TV
2a) If new hardware has app store, don't expect an update for old hardware, it just won't do it, not made for it. That's like saying, "make my iPhone 4 able to play games made for iPhone 6/iPad Air 2", it's just not realistic.