Why would anyone use the smart TV features which are sluggish and poorly organized compared to a polished AppleTV I have to wonder? ATV is fast, has lots of apps, and is far easier to use.
I prefer to use my Apple TVs. I am a long time Apple TV fan, and have used every generation since the original first gen from 17 years ago (still have it, too).
But, I understand why people use the Smart TV features over an Apple TV.
This topic has been discussed countless times on the forum, and there are many reasons. Some include:
1. The cost. The 2022 ATV4K3 is cheaper than the previous three ATVs, but it is still expensive for some. Think about it this way, they can get a decent Smart TVs for around the price of just one ATV.
2. Convenience. Many find it easy to just press their "Netflix" button on their Smart TV remote rather than connect another device and have another remote.
3. Picture quality. Not saying the ATV doesn't look nice, but in my experience, the Smart TV apps that are built-in to the Smart TVs tend to have better picture, especially for HDR content. Of course, this is just my experience, and other may disagree. That said, I still prefer to use my ATVs over the Smart TVs' apps.
4. Features. Some apps on Smart TVs have features that the tvOS equivalent does not. Netflix and YouTube come to mind. This isn't universal though, and there might be some tvOS version of apps that have features that the Smart TV apps do not have.
5. Apple.
Apple is the biggest problem for the Apple TV and tvOS. They hardly advertise it or explain to potential customers why an Apple TV would be worth it over using just a Smart TV. In one month, I am sure I see more ATV+ ads than all Apple TV hardware ads that ever existed.
Apple doesn't show much love to tvOS during events either. When was the last time you remember Apple mentioning something on the Apple TV that didn't involve another Apple product or service? I remember a few WWDC events ago, Apple spent more time on just the hand washing feature of the Apple Watch than the whole section of tvOS and the Apple TV. Many events, Apple doesn't even mention it.
Apple confuses potential customers as well. Apple TV, Apple TV app, Apple TV Plus, the naming convention is horrible. Not for the HW, but everything else Apple TV in it. The non-techie, which is most people, have no idea what the Apple TV is. Most people think it is an actual television or a streaming service.