I have an Apple TV and it filled up quick. I buy seasons, I buy movies, new and old. I prefer digital to DVD. I think it is smarter to have all the heavy storage at the home PC which was tons more storage anyway and is easily expandable. WIth the Apple TV once it is filled up you are done. I plan to rip al the DVDs I own and never mess with a plastic DVD case again.
On the 720p thing... this is geek fit crap that only people waiting for mass adoption of holographic screens (while 3d is just now being tested) really care about. No broadcast service coming in over copper can feed you the info... streaming live... that true delicious Blu-ray quality 1080 requires. 720p is Hi-def. Is it the best Hi-def? Nope. What percentage of people will notice.... a vast minority. Companies that live in the real world also have to be practical... unless YOU want to pay for the data center and more than 99 cents per episode 1080 would require massive amounts more data than 720.
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