The good: Provides access to a variety of free and premium media content--including movie rentals, TV shows, music, photos, podcasts, and YouTube videos--on your living room TV; streams media from networked Mac or Windows PCs; purchases and rentals can be done directly through iTunes Store on your TV; movie rentals from all major studios include some in HD and surround sound; sleek external design and elegant user interface; simple, streamlined setup; includes state-of-the-art 802.11n wireless networking; smooth, hiccup-free streaming.
The bad: Doesn't work with older, non-widescreen TVs; movie rentals must be watched within 24 hour timeframe; no subscription payment options; lackluster file support for non-iTunes video formats; oversimplified remote can't control other devices; no built-in DVD player.
The bottom line: With its enhanced iTunes video offerings, PC-free operation, and a lower price tag, the updated Apple TV is a compelling Internet-enabled entertainment device for the living room.