I was skeptical at first, and it could be better, but the Apple TV is actually very cool.
The big news is that you can now rent movies and buy TV shows to play on it, even in HD. But the thing I like best about it is that I can stream all of the music from my iMac to my stereo downstairs.
The other big thing is that I can display all of my pictures on my TV. It makes those digital frames look silly in comparison. The price drop makes it all worthwhile.