I won't spend too much time on this, but I have to follow up on my previous post here after David Pogue's review of the Apple TV produced this little gem of an insight right at the start:
"In the technology world, conventional wisdom says that we’ll soon be saying R.I.P. for the DVD. Internet downloads are the future, baby. No driving, no postpaid envelopes. Any movie, any TV show, any time."
Indeed, anyone with an Apple TV wishing to rent a movie or watch an episode of TV will be kneeling at the altar of the internet download at the iTunes store, but that's hardly the makings of a true eulogy for the DVD. Even still, a movie on iTunes isn't going for rental prices, but rather is more inline with DVD purchase prices. So remind me again why you'd pay the same price for something that's locked into your home network, has no additional content and perpetually teeters on the brink of accidental deletion? Oh right, because the Apple TV demands it.
If people were going to replace their DVD's with purchased internet downloads of movies, they would have done something similar already with CD's and music from the iTunes store. While I'm sure some people have done just that, they're a very rare breed; I know of but one, and his passion is for drawing comics, not exactly a reflection of the Western zeitgeist. Its a shame, because if DVD's were easily and legally rip-able the way CD's are, I think the Apple TV would indeed become the iPod of the home entertainment world (just, you know, without the always breaking within the first year part).