Isn't this the point of ATV? Apple's business model is simple... SELL MORE! Make a big deal out of each and every product release, so people will have to keep up with the Jones'. They do this by releasing subpar products with unsupported 'hidden' features. Then, incrementally release updates that support these features on new models only, so consumers will wait in lines at the Crapple store! (And making it so you can't replace the batteries in you mac, or iDevice) Just look at the iPad2... its everything the ipad 1 should have been but wasn't.
Apple will not start making TVs, its simply too much risk when they can connect iOS through a little box called ATV! To further my rant, ATV sux! It fits perfectly into their business model, by giving us nothing but a way to BUY more from iTunes! Really, who wants to watch a full length movie on an iDevice! Not me, unless I'm waiting in an airport! However, I do commend the strides in airplay... It is at least a step in the right direction! As far as "premium" goes the only thing premium about Apple is their cases and packaging that implies its premium (Oh yeah, and every Apple commerical that tells us just how premium Apple is...)
If you really want a capable streaming device that makes it easy to ditch cable/sat buy a Roku DVP...