I gave up my aTV 1.0 because it sucked for playing most HD files that aren't re compressed for it's ATV slim profile. The only value the old version had was in cracking it to XBMC, but otherwise it was exactly what people say - a front end for the iTunes store that you have to pay for; they SHOULD give it away, or even sell them at cost. It would be a great way to grow their market share.
That said, I got a WDTV Live and it plays all my stuff over the network with no hassles. The interface is a bit light, but it plays youtube as well and it allows me to plug in 2 external USB devices and it plays just about every file format you can think of... Oh, and it does have hacks for it too...
hmm weird anytime I right click on a youtube video it says flash player but that's on a desktop :S. Anyways, hulu is great when you dun have cable alot of good shows end up on hulu.
and you dun have to pay 99c or more per episode!
netflix is great but it costs money as well.