So the AppleTV is iOS-based and already does mostly automatic updates to itself so this shouldn't be too hard to adapt for other iOS-based iDevices.
PS: Let's not confuse automatic with OTA updates OTA updates. Let's also note the differences of cellular and WiFi OTA updates.
Originally Posted by PXT
For it to work as a backup device and a home server, I would hope that the additional disk space can be granted without the backup files being accessible. It would be a shame if someone accidentally deleted your last five years of backups with one key press.
How does that work out currently?
With any security, allowing people access to the HW is the number way to have it stolen or wiped. That said, you can encrypt your TM drive (at least in Lion). iOS already has encryption on the NAND so that should also be secure, but we're talking about platter drives here.
Also in Lion you can encrypt your entire drive, not just your Home Folder as is the case with SL. This means your TM backups are also encrypted. When you d/encrypt your drive in Lion it does over several hours while you are using it. I think SL's user level encryption required you to wait.
I haven't played with it much because it's pretty serious encryption with plenty of warnings. You can't specify passcode for it. It generates a 24 alphanumeric Recovery Key (How strong is it: 36^24 = 2.24522577 × 10^37 = 2,245,225,770,000,000,000,000,000,000,000,000,000, 000,000,000)
You can choose to have Apple store it (which isn't yet live) and even the Recovery HD option may have the option to retrieve it if you lose your password.