I don’t use home sharing at all since my internet became fast enough to stream music in real time. Sometimes I use airplay rather than trying to search YouTube, or whatever, on the AppleTV.
Yes, it’s entirely a streaming box, other than music, perhaps, with some airplay. It sounds like you’re proposing that AppleTV “apps” become, essentially, shortcuts to websites for the streaming providers. Not exactly, but the “apps in the cloud” sounds pretty close to running, say, Netflix in a browser.
Yeah, my parents, among others, don’t have a “home sharing master computer.” They have an AppleTV they expect to work at least as well as their fire tv.
No I'm not saying that. Whether AppleTV is "as is" with apps like HBO stored in 32GB or 64GB or if that app is stored in the "cloud" or on your phone or on a home share computer, when you choose to actually run it on the AppleTV, it comes out of storage and gets into active memory... just like running any app on your phone or on a computer. To be able to do that, it doesn't matter where the app is stored- local or cloud or phone or computer- as long as the same app code can get into the same AppleTV active computing "chips" (CPU + RAM, etc) so it can be run.
I'm trying to offer a way for Apple to deliver a lower-priced AppleTV and imagining one that jettisons relatively large storage of 32GB or 64GB that isn't all in active use at any time for enough RAM (which I'm wild guessing might be up to about 8GB MAX). In this hypothetical AppleTV, if it doesn't need 32GB or 64GB, subtract the cost of that "storage" for the cost of the (perhaps extra) RAM to make this concept work. Then "virtualize" the 32GB or 64GB as perhaps unlimited storage in iCloud (for customers like you and your parents) and on the local computer (for customers like me with lots of my own content stored on a hard drive attached to my Mac).
Or more simply...
Imagine your AppleTV in 2 parts: the computer and the storage... like a mini Mac mini with an external 32GB or 64GB hard drive attached to it. If it was built that way, it would still work exactly as it does now.
However, if it was that way, some of us might want to replace 32GB or 64GB with 500GB or 1TB or 2TB... which was something we were doing back in the first generation of AppleTV to create much more local storage on which we stored our own (entire) ripped CD collections, home movies, DVD rips, photo collections, etc.
All these years later, there are other options: iCloud storage as a potential alternative to 32GB or XXTB of storage and airplay. In this concept airplay would still work exactly as it does now. I doubt airplay uses the 32GB or 64GB now at all (or maybe it might buffer just a bit to it. If so, this concept of a bump up in active RAM would cover that). Thus, Airplay would still work as it does now.
So that leaves the storage- the 32GB or 64GB- which holds apps, some of the media being streamed as a buffer, etc. Just as you can store stuff on a hard drive hooked to a computer, you can store stuff in iCloud. The computer doesn't care as long as it can load what it needs to load. Same here.
So you and your parents app collection could be stored in iCloud. It would look exactly the same on your screen. But when you wanted to run one of the apps, instead of loading it from 32GB or 64GB, it would load it from iCloud INTO the computing portion of the AppleTV where the app actually functions. You and your parents would not notice any difference because it would all work the same.
However, by kicking the 32GB or 64GB local storage OUT of the box and replacing it with a small RAM buffer, Apples cost of the box would be cut by the value of the local storage minus the new cost of any added RAM to make this work. User experience would be THE SAME but the price of that AppleTV could be less because it has less cost in it.
I'm speculating here to try to answer the question of HOW could Apple lower the price and still get the big fat margin Apple loves. To make that happen, something has to go. There's not much to AppleTV now that can go. Storage seems most logical... especially since it is so easily replaced by iCloud or on the home shared computer in the home.
I hope this helps clarify it. I'm just trying to offer ideas for HOW to get a lower price in an Apple profit-hungry way. I'm confident this would work just fine
AND deliver a lower-priced AppleTV
AND let Apple take a hefty slice of the price as margin.