It also goes without saying that the Roku -- like every other non-Apple device besides PCs -- can't access anything purchased or rented from Apple's iTunes Store.
Roku has also tried to push the idea of its boxes as casual gaming consoles -- the Roku 3 does come with Angry Birds Space preinstalled. But besides Angry Birds Space, the game selection remains very weak. It's disappointing, because the new speedier Roku 3 feels primed for NES-era platform-style gaming (just turn the remote sideways), but I'm not optimistic there will ever be enough developer support.
Cross-platform search that works
With so many channels supported, the question quickly turns from "what can I watch?" to "where can I find it?"
Roku rolled out its cross-platform search in late 2012, and the company already thinks it's important enough to warrant a spot on its main menu bar. It searches through Netflix, Vudu, Hulu Plus, Amazon Instant, HBO Go, and Crackle, and only shows you results for the channels you have installed. Entering text using the onscreen keyboard is a little tedious, but the Roku 3's overall snappiness and its lightning-fast suggestions take most of the pain out of the process. (You can alternatively enter text using the smartphone app.)
There's still some room for improvement, though. While Roku's search will tell you if a TV show is available via Amazon Instant, it won't let you know if it's free for Prime subscribers until you click through to the app. (Google TV and the Xbox 360 handle this better.)
Live TV: Time Warner Cable, Aereo, and more
Roku's boxes have also started offering an impressive suite of live TV options.
Roku recently launched a Time Warner Cable app, which allows Time Warner subscribers to access to hundreds of live channels, including most major broadcast and cable networks, as long as you're on your home network. While it's not quite a full-on replacement cable box (you don't get access to your DVR recordings, and you don't get access to on-demand content), it does make for a nice second-room solution if you don't want to pay for another cable box. (See CNET's full hands-on with the Time Warner Cable app for more details.)
Of course, the Time Warner app requires a cable subscription. Aereo -- which offers live access to over-the-air major networks (generally CBS, NBC, Fox, ABC, and PBS) and the ability to record and store several hours of programming "in the cloud" for a monthly fee -- does not. And unlike the similar Simple.TV, Aereo doesn't require any additional hardware in your house; it's just an app on the Roku.
You won't find Aereo in the Roku Channel Store; it's a "private channel," meaning that it's not approved or reviewed by Roku. The big catch, of course, is that Aereo is currently available only in the New York City metro area, but it's looking to expand to 22 new markets later this year. (Disclaimer: CBS, the parent corporation of CNET, is in active litigation with Aereo with respect to the legality of its service. As a result, CNET will not be reviewing the Aereo service.)
Rounding out the live TV options are Al-Jazeera English (found in the Roku Newscaster app), the internationally-focused DishWorld, and sports channels like MLB.TV, NHL GameCenter, NBA Game Time, and UFCTV. With the exception of the free Al-Jazeera stream, all of those channels require a separate subscription, and the sports channels are subject to blackout rules, i.e. don't expect to watch any local teams.
Personal video: Half-hearted support and Plex
Roku has never focused on playing back large libraries of personal digital media. The Roku 3 does have a USB port on the side that can play a few digital media file formats, including MP4 (H.264), MKV (H.264), AAC, MP3, JPG, and PNG. That's fine in a pinch, but if you've got a hard drive full of assorted downloaded content, it's probably not enough.
Roku does support the Plex Media Server with an official channel, and that's your best bet for getting your own media. It's not nearly as easy to set up as the rest of Roku, but it shouldn't be tough for the techies that want this functionality in the first place. The big catch is that it requires as computer running the Plex Media server, unless you've configured a networked-attached storage drive to run the software.
There's also the aforementioned "Play On Roku" feature in the Roku smartphone app, which lets you "push" music and photos stored on your phone directly to your TV. It's a nice option that works well, but you're limited to non-video media stored on your smartphone.
But even with those choices, it ultimately still feels like Roku doesn't think your personal library is as important as your cloud-based content. I tend to agree with Roku, but it's not the right approach for everyone.
Performance: Faster...a lot faster
The Roku 3 boasts a more-powerful chip inside, which Roku claims is five times faster than that of the Roku 2 XS.
The difference isn't mere specs-manship; the Roku 3 feels blazing fast in every meaningful sense. I noticed the speed bump when navigating menus, installing channels, and even in those rare instances when you need to reboot the box. The Roku 3 even feels much faster loading videos from services like Netflix and HBO Go. It's hard to tell whether that's due to the better processor, dual-band Wi-Fi, or a combination of both. Regardless, the bottom line is the Roku 3 gets you to your content faster than anything else.
And to me, the Roku's overall snappiness is the best answer to the oft-asked question: why do I need a streaming video box when my PS3/Xbox 360/Blu-ray player/Smart TV already does streaming? All of those options work, but they're all much slower and frustrating to use, especially when you consider initial boot-up times, required software updates, and pokey responsiveness. Streaming video is all about instant gratification, and the Roku 3 takes that to the next level.
What are the alternatives?
The Roku 3 is one of the most recommendable products out there, but there are a few cases where it's not the best option.
Dedicated Apple fans: If you're heavily invested in iTunes content, the Apple TV is going to be the better choice, as you'll gain access to all your purchased movies and TV shows. And if you have a household of Apple devices, it's worth considering the Apple TV just for its awesome AirPlay functionality. No other ecosystem lets you so effortlessly stream music, videos, and photos stored on your mobile devices or from nearly any app. And if you've got a relatively new Mac with Mountain Lion, you can do full-blown screen mirroring with AirPlay, too.
Personal media hoarders: If most of the content you watch is stored on local hard drives, Roku's boxes aren't a great choice. Instead, opt for a box that focuses on extensive file formats and works more seamlessly with a networked-attached storage drive. Western Digital's TV Play and TV Live are better choices for media hoarders.
Second room box: Ironically, one of the best Roku 3 alternatives is its cheaper cousin, the Roku LT. I've personally championed the LT over Roku's more expensive boxes in the past, but the Roku 3's improvements -- most notably speed, design, and the remote's headphone jack -- make it worth the extra money. The Roku LT is still a stellar budget box for a room that doesn't get as much use, but get the Roku 3 if you can.
Conclusion: My favorite $99 streamer
The Roku 3 is the best streaming box yet -- and, yes, that means it tops the Apple TV -- with its vastly superior selection of streaming services, snappy cross-platform search, and neat headphone-jack-in-the-remote feature. Even as an owner of multiple iOS devices, the Roku 3 wins out for me. It's hard to resist the allure of the AirPlay, but when I'm in "couch mode", it's actually nice to disconnect from my mobile devices, instead of serving up content from an iPhone or iPad.
Perhaps Apple will eventually "crack" the secret to the future of TV, but in the meantime, the Roku 3 is as good as it gets.