I causally mentioned to my friend at work who is also an Apple user that I may get the Apple TV when it is finally out. His reaction was, "What? Why would you want to watch video blow up?"
I explained to him that I want to watch my video podcasts on the TV instead of in front of my computer, despite the fact I have a very nice 24" LCD monitor. My friend just rephrased his question and wanted to know why I would want to watch low resolutions video on my 46" HDTV.
Then I realised that he thought all the video podcasts on iTunes are sized for the video iPod. He did not know some video podcasts are in hi-def, such as MacBreak which is in glorious 1080p. Others such as Diggnation and Merlin Show are in decent quality 480p which should scale OK on the big screen. But the most important of all are the TV shows that we've bought from iTunes: Smith, NOVA, etc. which we would not watch unless it is easy to put onto the big TV.
Yes, there are cheaper ways to get video from our macs to the TV but Apple TV takes the hassle out of the whole equation. Do I really want to figure out how to stream video from my Mac Pro to my PowerBook (probably using VLC), then onto the TV using S-Video (i.e. no HD)? How would I control the playback? Certainly not through a remote control and an onscreen display that Apple TV would provide. Do all these worth $299? To me definitely, probably not for most of you geeks out there. But then, I just want to watch video from my computer on my HDTV, not doing my annual geek certification exam.