Let's face it, you can get a decent DVD player with USB input for less than an Apple TV. Put your video files on a USB flash drive (e.g. a 1stG Shuffle!), insert it into the DVD player and boom, there you go, an easy way to watch your video files without having to create physical DVD videos. The Apple TV is definitely a more elegant solution but it won't play DVD images (but of course the Mac will, easily), not to mention XviD and files using older QuickTime codecs. So am I missing something? Forget for the moment the fact that I want to record video as well (I can do that on my DVD recorder, take the disc to my computer, trim it and re-encode it). What would make an Apple TV a compelling purchase (apart from being really cool to own)?