Seriously, WHY is there a Hard Drive in this thing? It makes NO SENSE! If it can stream at 300Mb/s, that should be plenty quick for any 802.11n-equipped computer. So assuming that one's AppleTV gets its media from a "host computer" (which is in turn connected to the iTS), everything on the AppleTV would be a duplicate of content on the host computer -- a device which could just as well be streaming the data. Apple could have cut the price by almost $50 by not including the 40GB HD. Very unwise, if you ask me.
Alternatively, they could've added another HD plus a slightly beefier processor and made the device, in effect, a 80GB, dual-turner DVR/media streamer (granted it would probably be a little thicker). Since DVRs are all the rage these days, Apple could see the DVR features available today and raise media streaming... all for a very low price of $400, flat.
Perhaps this will be a future version of the device, and Apple might just be testing the waters, but if the device fails, primarily because it doesn't include DVR capabilities, the AppleTV will not have a second chance. Apple needs to get the product right the first time, not the second time. Same goes for all their computers/devices, practically... 2nd gen is always
better. I know I'll receive some flak for saying this, but that's why I'm waiting for the 2nd gen iPhone... that and I don't have money for it now
. A big wedding is coming up!