As I mentioned before, the real problem with Apple TV is that there is no good backward compatibility for video.
An S-video or composite port would solved the problem.
If you only have one component input connector on your TV you now have 3 items fighting for the connection: A DVD player, nintendo or other game, and Apple TV.
For me it really comes down to the DVD player vs Apple TV.
Do I want to watch my DVDs in full quality, or see my photos, etc on Apple TV?
Here, Apple doesn't give you a choice. If you buy their box, it has to use the component input port, which means connecting the DVD player via composite or S. This is going backwards.
I would like to add an Apple TV to my set-up, but not at the expense of watching DVDs in full quality. Remember that this would also mean that you'd lose the sound quality of surround sound as well.
I would like to have both. Keep my DVD and surround sound at full quality, and just add the apple TV box. Impossible unless I buy a new TV.
I should like to have the choice in which one I'd connect to the older composite port. Without the choice we see apple acting very much like that company in Redmond. What a shame.
The other choice is not to buy it. I'm sure many will elect this one.