I love this little guy! I love that I can steam my music and podcasts thought my TV. And I really love the simple remote design and the Hulu Plus app interface. The Netflix app is a lot different than what I'm used to but in a way it's more organized. I wish it has Amazon Instant Video and Vudu but I know Apple won't add them because they are Apple's to biggest competitors when it comes to getting new episdoes of a show that aren't on Netflix or Hulu Plus until the next season starts. Since I got this little guy in November I haven't stopped using it. I love the hulu app and it practically the only thing I watch. And my sister would say the same. (She got her apple TV for her family for Christmas and her kids watch hulu on it non-stop.)
One thing that kid of bothers me with this device is the fact that it doesn't actually turn off. It just goes into sleep mode after not being used for awhile. I just it's so the start up time is nearly non-excitant. Which I kind of like. I wish it had a home button but if you press and hold the menu button and it will take you to the main page.
All in all I love my Apple TV and total recommend it if you want to stream Netflix and Hulu plus your iTunes content. But if you have more than just Netflix and Hulu you might want a Smart Blu-Ray Player.