Pauric, you're actually wrong on this point, or at least 1/2 wrong.

I respectfully disagree with the thinking that the product it positioned to
'take on Apple TV type products' aka home media servers.  They are complex
products, OS's that aim to deliver a simplified Personal Computer
experience.  Apple TV is iTunes for your TV.  iTunes is Video, podcasts,
music, pictures etc etc.  Multiple formats, Multiple sources - complexity
thats hard to get right.

If you already own a computer with iTunes, then yes AppleTV extends that to 
your television. But if you don't own a computer, you can still get an AppleTV 
and rent movies with it. From Apple's site:

Want to rent a movie? Just grab the remote. With Apple TV, you don't need a 
computer to rent digital movies - you rent them directly from your TV. The 
completely redesigned Apple TV interface makes it easy to browse, rent, and 
watch movies from every major Hollywood studio.

So Gretchen is probably a little more right than you think. Considering Netflix 
didn't have a device like this, and Netflix existed long before AppleTV - the 
timing of this seems to be more inline with Gretchen's logic that it's to take 
on, or at least try to not lose too much to AppleTV.

On Fred's original post - I personally don't like the idea that I'd have to 
manage my queue on a computer. I guess I'm lazy like that. If my butt's already 
on the couch I'd rather just start watching something on demand, not get up - 
find something to add to my queue, go back to the TV, browse the queue and then 
start watching. Seems like a lot of work when my goal is to just watch a movie.
--
Jeff Kenny
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