I'm less concerned about the resolution where absolute bandwidth is your limiting factor. ATV has an absolute bandwidth of 6MBps. OTA has an absolute bandwidth

I'm less concerned about the resolution where absolute bandwidth is your limiting factor. ATV has an absolute bandwidth of 6MBps. OTA has an absolute bandwidth of 18MBps in the US. Even if it could use 1080p, outside of still images, its going to look like crap during complex scenes. Its the balance between bandwidth and quality. If I want high-quality (like Avatar or any Pixar movie) I'll get it on bluray, for everything else ATV DVD-quality is fine. But as I said before, some people will have the need for a HTPC. I have a moderately small apartment and don't watch that much TV. I realized, a while ago, that keeping a dedicated PC, recording shows I'll probably never watch, running 24 hours a day was futile. If there is something interesting I can watch it live, download it through iTunes, or pull the occasional torrent.