"The design changes are significant. The new Apple TV is a quarter of the size of its predecessor and is all black—which will help it blend in with HDTVs and various other entertainment center devices. The device now only sports HDMI, power, optical audio, and ethernet ports (along with a diagnostic USB port). It also keeps the built-in 802.11n wireless networking of the previous generation. Unfortunately, the Apple TV still has a maximum video output of 720p, meaning no 1080p streams from iTunes (or Netflix)."
Quote from ARS blurb about the ATV.
Most newer sets have an HDMI connection.
If not you don't need an Apple TV evidently?
If my Internet connection dies with an old Apple TV I can still watch what I have on it already.
New Apple TV Out of luck,I can only stream from a computer then.
Only time will tell but I do not think it even enters Apples mind what we want or need.
99 cent shows and $4.99 movies we rent is what it is after.
Steve even said it would be cheaper to rent the same ones over and over than buying them.