BusinessWeek review of the updated Apple TV
Still, Apple must do better. Internet access is limited to Flickr and .Mac photos, YouTube (GOOG), and the iTunes Store. But what about the TV networks' program offerings? And the movie selections lag far behind other services, including the Amazon (AMZN) Unbox service on the TiVo (TIVO) HD, which can do everything Apple TV can plus a lot more. The recommendations system could stand some work, too: The store made the peculiar suggestion that people who liked Doctor Zhivago might also enjoy Jackass: The Movie.
Apple TV remains a work in progress and will get better over time. But for now, most people will likely find it to be too limited.