I like mine, but when my sister called me asking what can they do with theirs (they just bought one based on their son's recommendation), I told them that they should return it.

1) Movie rentals, while nice not to have to go out and hit the red box up, is expensive. While iTunes does carry more than red box, you can also use Netflix for that at a cheaper rate. Cheaper just to wait till they hit red box for newer movies.

2) She has DishTV (lives out in a small town) and so those channels offered on the AppleTV are wasted on them since you have to have a cable tv provider or be a subscriber to HBO.

I have an AppleTV but those TV channels are wasted on me cause I don't have any of the cable tv providers.

I rip my movies that I own and have them available on the AppleTV. So that's convenient.

Advantages of the AppleTV: the ability to stream your photos/videos/music from your iPhone or mac pretty easily.

The ROKU is VERY tempting because then you can hook up an external HD for expansion and play your movies/TV shows from there...if you were to say download them.

The AppleTV won't allow hooking up an external HD without jailbreaking them, which I don't know anyone that does.

Get it if you absolutely have to and you think you can justify the expense. But I don't recommend it unless you like spending money renting movies/tv shows.