Chris Breen nails it:
Also, set-top boxes are expanding to embrace streaming Internet content—Netflix, Hulu, Pandora, Amazon, CinemaNow, MLB.com, Rhapsody, Napster, and MOG. The incorporation of Netflix on the Apple TV is terrific, but it hardly overshadows the Apple TV’s focus on the iTunes Store. And that continued focus means that viewers remain subject to the whims of the movie and TV studios. For instance, on the new Apple TV you’ll find TV rentals from only three networks—Fox, ABC, and the BBC. I’m certain Apple would love to add every other network found on your cable or satellite box (including the premium cable channels), but Apple doesn’t have the power to make that so. At the same time, the company is reluctant to provide alternate paths to this content, as those paths don’t lead to media sales.
Coming full circle then, is the new Apple TV more than a hobby? For the time being, probably not. Its continued reliance on iTunes and the iTunes Store make it a less-than-universally-desirable device.
Of course there’s always the possibility that we’re seeing just the first step in The Bigger Plan—the one where the Apple TV embraces its iOS roots and becomes the iPad for TV, allowing you to install any app you like (including games as well as media apps). Should that day arrive, goodbye hobby, hello necessity.
Even with the spiffy new hardware, the device continues to feel hollow.