Will the greatly hyped AppleTV be a dud? According to Brent Schendler at Fortune, AppleTV is a dud. They even included alternative uses for AppleTV including a Sushi Platter:
Some complaints he makes include the low quality of videos. "it requires an HDTV, but the video you download is so low-res that it looks as fuzzy as plain old broadcast TV" -- Brent Schendler.
Another is that there is no way to order a movie directly from the iTunes store via your TV. You have to manually download it to your computer first.
On the positive side, YouTube and Apple made an agreement to broadcast YouTube through the Apple TV interface. Together with Apple's iTune monopoly which can be broadcast to the living room TV, Apple may have a chance to succeed with the concept of AppleTV.
But at this time, I don't think the product and technology is fully mature and widespread adoption may take some time. There's a user who says that he's been watching YouTube Videos on his Nintendo Wii for some time. There's another user on a bulletin board echo the complaints of the bad quality of the videos. Another user wishes that Tivo functionality can be integrated with AppleTV.
Granted, we are still at the beginning of the Digital Living Room Revolution. While AppleTV's product may not be the "It" product, if I were to handicap all the players in the Digital Living Room, I'd give Apple a good chance of having a good market share in the Digital Living Room. But not with the current AppleTV product.
Google (GOOG, owner of YouTube)