Personally I'm not sure I had the Apple TV 2 and was quite pleased with it, but got the newly updated version based on the allure of 1080p. IMHO, on my 46" Samsung LED, the new 1080p on the AppleTV is only slightly noticeable; I'd quantify it as a 15% improvement in overall picture quality. Upgrading to a Denon receiver and Energy 5.1 speakers to go with the new Apple TV from my previous Sony surround-sound-in-a-box was a much more noticeable and pleasing upgrade. Also, Airplay does not seem to be improved on the new AppleTV. I thought with the faster processor the audio and video would not be as stutter-y and clunky, but it is. What are your opinions?