Lack of internal storage is a major step backwards. The inability to sync content and just have it on the device and available is beyond shortsighted. My workstations at home (mostly Mac) are multi-user, that way we all get the screen settings, browser favorites, etc. that we want when we use the computer. So now with this new device while my 5 year old is waiting for a movie, I have to turn the home theater on, go run upstairs and see who is logged on, log them out if it isn't me, then start up iTunes, then run back downstairs to turn the kid's movie on. Yes adding supported streaming is cool, but I have 10 years+ of digital content, that with this device would be significantly harder to use. Digital Living Room indeed. I don't want to stream what I own, I want it on the device. BTW the "old" AppleTV could stream live from iTunes too. Maybe what I would want is a firmware release from Apple for the "old" style AppleTV that would make me not have to reboot the thing every few days.
Apple TV 2.0: Still A Sucky Hobby
Apple TV 2.0: Still A Sucky Hobby