I have to admit it - I'm one of the people who uses an Apple TV occasionally. It's a very nice box and sits under my television. Apple has done uncharacteristically little with it.
There is speculation, following Wal-Mart's entry into the television streaming world, that Apple might be prompted to get off its corporate backside and make this box work. It's only speculation so far, but if it happens here is my wish for the next version of the product.
1. A less jerky picture. In common with all streaming and hard disk based TV technology the picture motion is slightly downgraded. I can see it if nobody else can...
2. A TV tuner. It makes no sense at all to have a box under the TV that won't double up as my digital box or preferably my Sky+ box as I'm in the UK (this is like a TiVo but you get to pay Rupert Murdoch a subscription). Could involve input for a satellite and yes, I know this will make it a larger box but then I could get rid of the satellite box.
3. Hard disk that relates to this TV tuner (see the TiVo and Sky+ references above).
4. DVD writer for archiving video as copyright permits. Also allows me to play my DVDs and guess what, I can get rid of another unsightly box.
5. Get synchronisation right - I'd rather not see my Apple TV appear on my list of things synchronising with my computer's music collection one day and watch it vanish the next, thanks.
Get all of this right, include the download store, YouTube and other functions you have on it at the moment and you might have the hit on your hands that this box so richly deserves to be.