Based on the teardown estimates, Apple is barely making any money off AppleTV, so I doubt there will be a substantial update any time soon. I don't think it will ever gain DVR functionality, just as iPods do not have FM radio. Combining it with a cable set-top box and a Tivo recorder would be too expensive and much more complicated to operate. I am pretty sure digital broadcast standards vary quite a bit from country to country, so it would be nightmare to support them all. Anyways, you guys already know all these, but I guess you have to fantasize about the possibility.Yeah the current Apple TV is too limited by its hardware.
Rentals is pretty much the best Apple can do.
TV. They could start with a larger external drive since everyone seems to be begging for it.