You have to remember however that these competing products ran on the Windows OS platform. This gave M$ the competitive advantage ultimately, as they could use internal APIs to enhance the performance/features of their product, while (possibly) worsening the performance/features of their competitors offering. This is a totally different fight. Apple owns the ENTIRE software/hardware stack. M$ will have to build a competing stack of their own, using existing pieces (Win7/XBoxLive) and some new ones (WinMo7) to stand a realistic chance in hell. Not to mention Google is constantly nipping at their heels with the 'Cloud Dog'. I wish M$ the best of luck in this endeavor. Apple looks pretty battle-hardened and unbeatable right now...

Not to worry, dude. I'm thinking Apple has gotta eventually (i.e., within a year) add an iTunes subscription model to facilitate sales of AppleTV. Think about it: ten of your favorite TV shows, and a few 'queued' movies streamed weekly to iTunes/AppleTV, for 15 bucks a month. Sweeeet...