BAHA! only just
No, it does. I rip and store my Blu-ray movies on my Mac and use my Apple TV to play them, so not "just", it does.
hahaha are you serious?? they are worse quality then regular DVDs
Uh, are you serious? 720p HD videos through the Apple TV are far better than regular 480p (or even 1080p "upconverted") DVD's. I'm thinking you might not understand the relationship of resolution and HD. I also think you've never used an Apple TV.
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But since this thread is about the Zune HD, it could be very good hardware wise, but Apple will always have 2 huge pieces of the puzzle that Microsoft doesn't.......the App Store & iTunes. Thousands of games and Apps to choose from......as well as the largest and easiest to use online music store out there. Apple has done extremely will with the integration of all these. Microsoft has not, and that's why I don't see the Zune HD as a threat to the iPod unless they really pull something amazing out their rears (and the ability to play HD videos onto an HDTV from the Zune isn't one of those either)