I'm clearly not an anti-Apple zealot, I identified myself as AppleTV, multiple iPhone/iPod owner, and an Apple Fanboi.
I'll argue that only an Apple-zealot Fanboi who never sees anything wrong with an Apple product could call the AppleTV anything beyond "marginally useful as a media extender for iTunes."
This is only useful if all of your media is within iTunes, and in a format playable by the AppleTV. Only a geek would go to that effort. Meanwhile, competing products offer more functionality along with the ability to tap into your iTunes music library. Example, XBox 360 allows gaming, NetFlix, and you can tap into iTunes.
For the typical non-Geek, some Blu-Ray DVD player with NetFlix or Amazon built-in offers less expensive content that's easier to access, unless you're willing to rent and rip DVDs to iTunes, which most non-Geeks won't bother with.
It is NOT a "complete multimedia device" unless you hack it. You cannot watch TV on it, you cannot play a Blu-Ray DVD on it, you cannot play a standard DVD on it, you cannot play games on it, you cannot stream all-you-can-eat video on demand to it, you cannot surf the web, you cannot watch Hulu or do anything besides play iTunes music and video content unless you hack the thing.
I rarely use my AppleTV and found that adding a Mac Mini to the mix was a much more satisfying experience, for not a heck of a lot more money.
I'm glad you like the device, but you're clearly not part of Joe Public, you're an Apple loving geek, as evidenced by the fact that you read this site, if nothing else.
No argument there.
You are wrong in your thoughts regarding Joe Public. You have it completely backwards. Joe Public wants everything from one place. Apple created the iTunes Store to provide everything from one place. It's the geek who is torrenting everything, making streaming to aTV more complicated. Joe Public is not going to build an HTPC or turn a Mac Mini into one. Joe Public is gonna go to the Apple Store at the mall and say "I want to watch movies on my TV and play music through my home stereo." The employee will show him iTunes and AppleTV. He'll probably be shown how an iPhone or Touch can integrate into the experience. He'll walk out with an iMac and an Apple TV - and maybe a Touch. People who hang out in forums like this do not represent Joe Public.