Apple TV is essentially 3 main functions in one package. iTunes front end, content/channel provider, and wireless display.
On the face of it, Apple TV is a front end for iTunes and allows you to buy or rent content and view it on the box along with previously purchased content. The usefulness of this is based on where you buy content. If it's not iTunes then you can ignore most of it. All the magic from this perspective is essentially gone for videos and even music doesn't work without iTunes Match. You can alternatively access your media from another computer currently running iTunes, but only the content in iTunes (not a huge issue) and again, only when the computer is on and running (think of it like an iTunes extender). The interface is lush and a joy to use but it's dependency on iTunes purchases or iTunes running on a computer diminishes the usefulness. It'd be nice it it could access a network attached storage or something similar.
The other content means are provided through channels/apps, like on a Roku box, but are limited to only 13. Missing are the normal heavy hitters: Hulu Plus, HBO Go, Pandora, Slacker, Spotify, etc. Only Netflix is present really, but what device doesn't have access to that? I have 3 other devices connected to my receiver that can do it already and personally prefer the PS3 Interface. The general feel of the channel/apps is also very smooth and works fast but some of them feel a bit long in the tooth, as if it could be better but in order to fit the overall design scheme it's not (again Netflix is an example).
The final feature is AirPlay. This is a feature that allows you to stream music and video from your MacOS and iOS device. There's also AirPlay mirroring which takes what you see on your device (or computer once Mountain Lion is out) and puts it on the Apple TV. It seems, based on the packaging, Apple is trying to play this up a lot and I'd agree with that goal. It's really simple and amazing to use where it works (certain applications don't support it or actively block it). If you're familiar with Intel's WiDi it's a very similar thing, especially with AirPlay mirroring. Certain things work better with Airplay though (Slingplayer and Netflix, for example, display the controls on iOS while the video is on the TV) and others not so well (Hulu, for example, doesn't support video out - only mirroring. HBOGo is blocked entirely, mirroring or video out). It works really well and is very smooth with minimal lag with audio and experiences only occasional minor choppiness with video provided you're on 802.11N or have the apple tv wired (had bad problems with quality over two G routers). The same, however, can't be said for AirPlay compatible games like Asphalt 6, which due to lag/stuttering is near unplayable (the jittering and stuttering mean you'll miss too much with fast paced games, e.g. In Asphalt you'll crash).
Your enjoyment of this device will depend directly on the amount you give yourself to Apple, more specifically iTunes. If you don't use iTunes for content purchase at least 1/3 of the functionality is right out the window. And if you own a PS3, Xbox, TiVo, Wii, Roku, Google TV, certain Blu-Ray players, or even a smart TV then there's no point to the channels/apps really. No MacOS or iOS devices and there's no point to the AirPlay aspect. However if you're a diehard Apple fan and have lots of money spent in iTunes, this will be amazing, I'm sure of it.
That's not to say it's not without its pleasure, the device is a joy to use. I find myself wanting to listen to music from my TV just to look at the lush interface that's so simple and yet gorgeous. But, for all of Apple's shine and improvements to the device, they've failed to address the largest issue - lack of content options. Without more channels/apps like Netflix (looking at you Hulu, HBO, etc) Apple TV ultimately suffers from limited usability unless you're a big iTunes fan. While it's fair that a good percentage of people looking at this device will have some content in iTunes, Apple simply cannot rely on that to support this product alone. Features like AirPlay are a welcome addition but likely aren't enough. Especially considering that video playback is a bit choppy and mirroring, especially with games, has too much lag.
For me personally, I'm really only left with the AirPlay feature as a big feature. Which alone might be worth the price, especially if Apple can improve the performance. The content/channels/apps are, even objectively, poor. And the dependency on iTunes either running or being used for content purchases diminishes the utility of the media for me leaving the "Movies", "TV Shows", and "Music" features as empty. Yes it does everything the previous Apple TV did but better, but that's also it's flaw - it doesn't do anything new.
Pros:
++ Simple set up
++ Very pretty and smooth
++ AirPlay (for music and video)
+ 1080P
Cons:
-- Very limited channels/content
-- iTunes only for content, even for in network
- iTunes match dependent for music
- AirPlay lags and stutters a bit too much with mirroring and games
Things I'd like to see:
1) Support for network storage for content streaming. You can jailbreak and put plex or xmbc on to do this, but why do I have to?
2) More channels/apps. I've got all the missing channels on my iPad but why not on the Apple TV? Especially annoying since this is based off iOS 5 and has hardware better or on par with the original iPad.
3) Stronger AirPlay performance.
In the end it does really well at what it does (most of the time) but it's a very shallow pool.
COMPARISON TO ROKU 2:
I also own a Roku 2 XS, so I figured I'd update with some remarks in comparison. The Apple TV is notably easier to set up. The Apple TV interface is also generally better, however certain apps (specifically looking at Netflix) while smoother on Apple TV are better laid out on Roku. Specifically with that, I mean Apple TV forces a text list strong interface at front whereas Roku shows you the box art. The remote on the Apple TV feels better but is more limited than Roku (Roku XS is RF as opposed to IR on Apple TV) and also lacks the instant replay (10 second) button found on the Roku XS - very handy at times. Both are limited with text entry but have smartphone/tablet apps for use (although Apple Remote is only on iOS devices, whereas Roku Remote is on Android and iOS - a point to note, but not likely a deal breaker). Image quality is comparable, Apple TV works better wirelessly than the Roku though (especially at start). While Apple's interface is generally better/faster/smoother, it still ultimately lacks in content when compared to Roku. Roku has Pandora, HBO Go, Hulu, Amazon Instant, Crackle, and many other options. Aside from iTunes content (either from your computer or iTunes cloud for movies/tv or iTunes Match) there isn't anything I'm aware of that Apple TV has that Roku does not. Apple TV does have AirPlay, which again makes it nice.
While Apple TV interface is generally better and smoother, the cost of the Roku (I got the XS for $80, so 20% less) and the instant replay button make it a better option for streaming. It's not as refined but it offers the heavy hitters missing from Apple TV. Streaming options are just better with Roku.
Unless you own an iOS device or will be upgrading to Mountain Lion (for AirPlay) or are heavily invested in iTunes store purchases - Roku is better hands down as Apple TV's use will be very very limited. Conversely if you already own a gaming console or a TiVo or something similar then the streaming options of the Roku may not be unique (between my tivo, ps3, and 360 - there isn't a thing I use the roku for that I can't do on one of those - mainly the PS3). If you're interested in a streaming device and don't already own a gaming console, Roku is likely better. If you are only interested in Netflix, MLB, and NHL and/or you're really in love with iTunes or AirPlay, then Apple TV is better.
Personally? I'm keeping the Apple TV, for AirPlay alone, hooked up to my TV in the living room. The Roku is going in my guest room. The Roku is a better device in my opinion, but it doesn't do anything unique like AirPlay. Perfect on it's own though where I don't want to buy several devices again. Apple TV though is much much limited on its own though.
UPDATE:
I've tried other AirPlay games (Real Racing 2, NFS Shift 2) and the performance is better on these games. It's still not what I'd expect or really want to deal with but it's playable for sure. Lag/stuttering happens less often and when it does it's less severe as compared to Asphalt 6. I'll note as well that the performance doesn't have an appreciable difference when the Apple TV is wireless vs wired, so it's unclear what's contributing to the lag. But the fact that some games are doable gives me hope for the future.
Source: http://feedproxy.google.com/~r/amazon/lMQQ/~3/mBoKVEiOdr0/ref=pd_zg_rss_ts_e_electronics_5
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