I use the original Apple TV quite a bit, and even upgraded the hard drive myself (which is not entirely recommended).
What's little understood is that with the (original) Apple TV; it seamesly integrates local content with remote iTunes; so the hard drive is not really a requirement.
I did buy content directly from AppleTV in the past; but it's rarely that I do. I'd be OK if I can continue doing the same while it's stored on my computer and streamed over to the device.
Having Netflix is really the kicker here.
Discussion on:
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