As stated by Mossberg, AppleTV is very much a product in search of a market since it doesn't do anything very well. For instance:
video and audio quality were quite good for anyone but picky audiophiles and videophiles
Why would you buy an AppleTV if it's not to get a better quality video, DVD film, TV program or photo slideshow?
AppleTV can play the copy-protected music, TV shows and movies purchased from Apple's iTunes online store [...] However, it cannot play copy-protected music in Microsoft's formats, even from Windows computers.
In other words, you are restricted to the iTunes store, period. It won't play or stream DVDs, CDs or lossless music formats. Not for me.
In its usual secretive fashion, Apple refuses to say if or when this direct-to-the-Internet capability will be expanded. But we fully expect Apple to add the capability to stream or download a variety of content directly from the Internet, and that this new capability will be available on current Apple TV boxes through software updates.
Wishfull thinking. You get what you pay for, and nothing else. Am I the only one to be impatient with analysts and journalists who report their own speculation, not facts?
Also, the tiny, simple Apple remote control can't control the volume on either AppleTV or your TV set or audio receiver, so you have to keep reaching for the TV or audio receiver remote.
Living room nightmare. Shows you how flawed AppleTV is.
And you can't plug in an extra hard disk to add storage capacity, even though there's a USB port on the back and the built-in 40-gigabyte drive is too small to hold many TV shows or movies.
How hard would it be for Apple to use a 60 GB or 80 GB hard drive?
Apple is back to the good ol' days, prior to 1995, when:
1- it didn't feel that it had to give consumers what they want;
2- it believed that it could overcharge consumers for the "privilege" of buying a product stamped with the Apple logo. Apple directors were fools then and now. Sad.