I've tried and cancelled Hulu+ twice over the last year or so, hoping the service would improve. I don't mind the ads, what I mind is not being able to watch what I want, how and where I want to. I get that media companies are incapable of making sensible content licensing decisions, but seriously, why does it matter what screen I watch the programming on? I'm giving you money and watching your ads, shut up and show my TV show. I also hated the interface, it was and still is clunky and confusing.
Now though, with Apple TV availability, some of those problems are solved.
The main device I wanted to use Hulu+ on was my TV. I could do it through XBox 360, but using a game controller to navigate through the already awkward UI was a deal breaker. I could watch on my iPad or iPhone, but until recently couldn't AirPlay to the ATV, and even when they brought it back it didn't work well. I was also still relegated to Hulu's confusing UI.
With Apple TV, that's fixed. The streaming works great. The UI matches everything else on ATV, so I'm no longer at the mercy of Hulu's sadistic UI designers. Obviously, I can now also watch the content on my TV, where it belongs.
The content licensing issues still stand however. For $8/month it may prove to be a nice channel surfing option for the Apple TV, but would be much better if everything was available.