Apple TV (40GB)

Pros: Easily plays internet downloaded movies

Cons: No versatility

Summary: Unlike the iPhone, which does an insane number of tasks, Apple TV simply syncs or streams computer content to your TV. For me, that is not enough to fork up the cash.
The critical consideration is whether downloaded movies are compelling enough. Right now they are not. Quality is slightly inferior. You get no special features. Selection is very limited. I think I will stick with Netflix for now.
The odd thing is no video record function. Apple has really tied this thing into iTunes exclusively and therefore the product does not do enough to succeed. As an Apple shareholder I hope I will be wrong, but I think this will be the least successful Apple product since the Cube.