I am probably an outlier, as I do not view my demands as being very high. That said, here's my take, based on the two 4K devices I have (the current one and one from, I think, 2 generations ago).
It's cheap, under $200. There may be stuff cheaper, and maybe a lot cheaper. But at the end of the day, as far as I am concerned, it's cheap. Any electronic device you can viably use for YEARS that costs under $200 is cheap in my book.
My TV is a Sharp Aquos from 2010. The only "current" app it has is Netflix, which I don't subscribe to. The Apple TV gives me Apple TV+, Amazon Prime, Disney+, HBO Max, Hulu and probably anything else I would want to subscribe to (I don't subscribe to all of those). IMHO, it has steaming services more than adequately covered.
It has Apple Arcade. It's great for small children. Pair with a PlayStation controller and it is hours of fun, on the cheap for hardware and only $5/month for the games.
It has some educational games and content. Again, good for small children and available on the cheap.
It has AirPlay. That's awesome for piping a meeting through the 60" TV.
The remote, even the new one on the 4K, is absolute trash. I hate it and would like to do a lot of illegal things to the people who designed and approved that piece of trash.
It's very nice for travel! A lot of places just have cable TV. With an Apple TV, you have a portable steaming device, game console and meeting host thing all in one. Just connect it to the TV in your room and WIFI and off you go.
Besides the garbage remote, probably my biggest complaint is lack of native meeting apps, such as Zoom, GoToMeeting, MS Teams, etc. It would be nice being able to run those directly, rather than via my phone, iPad or Mac.
It would also be nice if it could run ExpressVPN.
I'm not a big fan of the interface. I'm constantly hitting the wrong button when trying to figure out how to go back or stop or whatever. I think the interface sucks as much as the remote.
Overall...I mean, what do you want for under $200? People need to keep it real. By all means go and save $50 or $100 or whatever the cheapest thing goes for, good luck with that. But Apple TV is hardly a failure in my book, no matter how poorly it sells.
By the way, Amazon used to sell a nifty case that is the perfect size to safely hold an Apple TV, a PlayStation controller, the remote and all the cables you need. If you want to travel with your AppleTV, definitely get one. They don't have it but you may be able to find it elsewhere:
fanttik Tool Case, Waterproof, Shockproof, Dustproof, Scratchproof Tool Bag, Portable Protection Case, Universal Indoor Outdoor Tool Bag, For Several Accessories, Cord, Charger, SD Card, Black
https://www.amazon.com/dp/B08X2JPKLS?ref_=cm_sw_r_apin_dp_EQ1H348W9BJEQR0F8ZZW