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It's not just about 120Hz refresh, or current lack of 12 bpc displays. I'm on a soapbox about Apple offering HDMI 2.1 and it's 48gps I/O in the next AppleTV hardware device to extend it's useful lifespan.
Most newer TVs offering internal streaming apps and Roku/Firestick/etc devices are inexpensive. This puts the onus on the ATV to justify it's price point. IMO, doing that requires premium features including HDMI 2.1 so you get the best from your display, and your investment isn't obsoleted too quickly.
 
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I *won't* upgrading my TV with HDMI 2.0 (60P w/ 120P internal) but there is a use for 120P input if you don't play games. Just like my TV can handle 24FPS with less judder because of the 120P internal refresh rate, a newer TV with HDMI 2.1 *should* handle external 24P content better/smoother but the difference may be minimal. As others have said the big advantage is future proofing. If I were buying a TV now full HDMI 2.1 support would be a requirement.
 
This has been happening for years already as most TV’s sold refresh at 120 hz or higher but only accept up to a 60 hz signal. You can send it a 24hz signal and it will display at 120. The Apple TV doesn’t do anything special here.
 
Definitely hoping to see an upgrade ATV this year. The current gen one still works alright, but I’ve noticed it getting buggier and buggier lately, as I finally upgraded my receiver to one that’s HDR compatible. It’s also absolute trash at Apple Arcade, constantly crashes. There are some games I’d love to play on the big screen, but the chipset I think just doesn’t have the power to push it all up to 4K.

I really agree with Blair’s conceptions here. The ATV is a premium streaming device and will certainly be priced accordingly. If so, it should accommodate as much tech as feasible to stay future proof for 3-5 years.
 
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