Engadget's take:
"n a day where everyone (including us) expects their gadgets to do everything, Apple again bucks the trend and releases a product that does a few things, but tries to do them very well. From day one the Apple TV wasn't expected to be the right for everyone -- especially not many of the gadgetrati that patronize our fine publication. It does have a specific target audience (namely, those happy to live in the iTunes ecosystem), but will it be the gateway device to bring digital video to the living room? What's more, will "the iTunes adapter" still pass muster with the ever-scrutinizing CE enthusiast crowd? Learn everything we think you'd want to know about this thing (except how to upgrade the drive) our full-on Apple TV review."
The conclusion:
"The Apple TV is great at everything it was built to do -- serve as a plug and play solution to interact with your iTunes media. But it isn't called the Apple HDTV for a reason. Sure, it technically supports 720p, but not in any meaningful way. Anyone who cares about high quality video will not be happy -- the 5Mbps limit is just too low. The other big misses here (like no photocasting, photo streaming, inadequate enhanced podcast support, and not being able to sync with multiple machines) are all hopefully things that can and will be fixed with future software updates. But the simple fact is, this is a mass market device intended to have mass market appeal, and while some will balk at the limited codec support and walled-garden approach, people who live in iTunes will enjoy the simplicity of just plugging it in and never having to fuss with anything. It's hard to deny the fact that the interface is slick and simple enough that anyone -- and we do mean anyone -- should be able to use it with ease.
For users who don't want to concern themselves with media library management, disparate home media serving and libraries, and the more complex bits about digital media in your home theater, there simply isn't an easier, more enjoyable way to get content from your computer to your HDTV. For everyone else (read: lots and lots of Engadget readers), until larger-scope issues are addressed, this is likely to be relegated only to novelty set-top box and weekend hack project."