Mostly the same recommendation except REDUCE storage in the box and shift it to "unlimited" storage back at Mac/PC. In other words, stream all as needed to onboard RAM: apps, movies, TV shows, music. By reducing Apple storage, the reduced price should be possible. And there is abundant storage on the home shared computer to which it links to hold far more than either 64GB or 128GB of apps and media.
I don't see why much onboard storage is needed exclusive for apps when gigantic movie files can stream over very quickly from drives attached to a computer. Shrink the storage, maybe up the RAM and stream it all from unlimited* storage.
OPTION 2: add one "normal" USB port back in so that those who want:
- gen 1's sync option can add whatever level of storage they want and sync up to everything to that storage. Those happy with streaming only wouldn't be paying for any storage.
- want a dedicated camera (but get confused that one built into the case only works well if the AppleTV is positioned right above or right below CENTER of the TV) could connect any of many USB-based cameras and position the camera in the most ideal of spots, regardless of how one positions their AppleTV, including all the places where a built-in camera could not be able to "see" anything.
- to resurrect also being able to use AppleTV as a music jukebox with TV off could have a Analog audio port again to connect to ZONE 2 receivers (vast majority of HDMI extractors don't work well, but either one "normal" USB port OR resurrect a 3.5mm port and this very nice benefit could be revived too).
I could go on, but there's a few very tangible, little things that can deliver a lower price that would make beancounters happy too AND fulfill some simple functional wishes held by many AppleTV users.