Is Apple TV for me? A newbie!

Prob not..

Apple TV has a good selection of TV networks. However, you must have a provider to watch these TV networks. Otherwise, you purchase TV and Movies from iTunes.

No.

As far as I now, Apple stores only sell the latest. Older versions didn't support 1080p, etc..

HDMI is high-def - supports 1080p. Much better picture quality. HDMI also carries audio along with video.

Not sure the variations of different models. I would just buy it at your local Apple store or reseller.

To use different interfaces, remove restrictions imposed by Apple, etc..

 

Before I answer your numbered questions, I need to point out that for someone who doesn't really watch live programming, the Apple TV is a pretty good device. I'm that someone.

1. Would Apple TV suit my needs based on what I wrote?
See what I wrote above. I'd say yes but that is ultimately up to you. Remember, you can always return it if you don't like it. Apple Store has 14 day return policy, no questions asked.
2. Is there regular network programming available on Apple TV?
If you mean live programming, then very little. I think some content is live like Bloomberg and some sports content (NFL Now?)
3. Does apple have a PVR/DVR feature so I can watch live TV later?
No. Most of the content is on-demand anyways.
4. I see different versions (1, 2, 3, etc.). How are they different?
1 is too old, don't get it. 2 is 720P only. 3 is 1080P.
5. I see Apple TV only has HDMI. How is HDMI to VGA quality - will I notice?
HDMI and VGA are both technically capable of 1080P. HDMI is digital. VGA is analog. Digital is better. Also, the HDMI standard supports 4K. The Apple TV itself does not support 4K content.
6. Is there a US or Canadian version? I'm thinking I'm going to buy a used one off eBay or CL. But $100 isn't a lot new either.
Like most Apple products, there is no region specific model in terms of function except maybe stuff like Apple keyboards which have different keys/layouts/etc.
7. What are the advantages of the older versions? I see they can be hacked. Why would I want to do that?
1 is too old. 2 can be hacked to use XBMC or Plex or other media center software. 3 cannot be hacked (yet).
8. What's the on demand selection on Apple TV like?
Lots of stuff added in the last year. A Fox channel was added today I think. You can look at the Apple page for Apple TV to get a list of all the different channels. Apple TV has "channels" but these are not always live channels. Think of channels as more like a certain content provider. Like the Bloomberg channel has both live Bloomberg feed AND on-demand Bloomberg videos. Netflix channel is basically a Netflix app or Netflix.com. Just making sure you don't get confused when Apple says channels since most people's mind equate channels with live programming channels.
9. How does it compare to the other services like Chromecast, Fire TV and other services that I didn't mention?
Chromecast doesn't have "channels" or apps by itself. This may have changed or will be changed in the future. Content must be streamed to it by some other device, like a smartphone streaming content to Chromecast which plugs into HDMI port of HDTV. Fire TV operates like the Apple TV and grants access to Amazon Instant Video and Amazon services like their music, movies, tv shows, etc. There is no Amazon channel on Apple TV. But I believe you can AirPlay the Amazon Instant Video app from your iDevice to Apple TV. I haven't tried this but I think it works. Roku has lots of apps you can install. But it tries to do too much and the overall experience is kind of a mess.

If you have multiple iOS devices, the Apple TV is a good purchase. You can AirPlay virtually anything on your iOS device to your HDTV (or projector). And if you buy stuff from iTunes and/or use iTunes Match, all of your stuff will available for streaming on the Apple TV. Basically, for iOS users the Apple TV tends to be the best set top box. For everyone else, it's a hit or miss.

 

I don`t think its for you. First of all to fully utilize Apple tv, you need to have cable subscription as most of the apps for channels need authentication from your tv provider. If you don`t have that then only things that you can do with it is, Netflix (again you need subscription), Youtube, Itunes media (if your purchased) and if you have your own ripped movies or videos etc then you can use Plex to stream them from your library. If you have use for these, then get ATv3 and it can easily be made to run Plex.

If none of this is on your list of things to do, then only remaining thing left which you can use ATV is for airplaying from your Macs or Iphones.

Also if you don`t like it , check our Roku or WDTV player

 

The above covers everything pretty well.

If you are close enough to a city, you can probably put up an antenna to get your locals (maybe-to-probably in HD) for free.

If you have broadband through a cable company that also offers a TV subscription, you may have some free channels (particularly, the same (local) ones you might be able to get with an antenna) in that cable even after you quit your cable subscription.

TV misses a lot of your targets on its own. It sounds like you might want to try something with a TV tuner in it (like maybe a Tivo or similar) or products like the Elgato DVRs you use with a computer.

I see TV as a solid augment to cable/satt. It's also a fantastic music player (better than any CD changer we've ever had), photo viewer, home movie player, podcast/vodcast player and so on. It has a large amount of commercial-free, on-demand video content but that's going to hit your wallet every time. If you have an iDevice, you can airplay video from that iDevice to it (so any video you can find online can be "thrown" to your TV through your TV