There are a number of other devices that would work fine in your situation. Apple made the AppleTV for a very specific purpose -- extending iTunes into the living room. I can imagine the support nightmares of people calling in wondering why the MKV file they just torrented from The Pirate Bay doesn't play properly.
Ya well thats the type of thinking that got Microsoft into trouble and Apple is treading a fine line w/ their Mac/iTunes/iPod restrictive pipeline. Any other comparable product out there simply provides a way to get your computers *content* onto your TV. Hell I can by an $80 dongle that enables me to stream any computer internet/computer content onto my TV through my Blu-ray deck. Meanwhile the TV has all these capabilities built in yet Apple goes out of their way to block them. Thus the 3rd party comes to the rescue....
For me its not a "situation" but merely an observation. I'm looking at making a purchase to connect my digital content to my flatscreen is all....and right now that Western Digital unit is looking pretty fine.....so is the Lacie Cinema drive. All I want is Apple to impress me w/ an updated unit to justify getting it. As it is, it barely justifies consideration.