Then again, if a few more networks do something stupid like NBC and started pulling their TV content from iTunes, Apple should add a tuner and recording capability to AppleTV...just to teach them a lesson.
But really, until Apple starts selling (renting!) movies that are at least DVD quality in sound and video (it meets neither, right now), the Apple TV will be a pretty poor option for most folks. That leaves the mini as the only legitimate home theater option. If FrontRow in 10.5 gets an AppleTV makeover and retains the ability to play DVDs and ANY video content in your Movies folder (not just the pathetically limited formats that AppleTV plays), I'll probably be adding a mini to my setup. Add the ability for FrontRow to browse, select, and play video TS folders (DVD disk images) and it would seal the deal. (or play a DVD ripped to H.264 with Handbrake with AC3 pass through...)