Orange, no,

TV1's hard drive is no kind of centralized hub for streaming out to other things. Think of it as solely a big(?) amount of space to locally store some media. The benefit is 1) being able to play media with the computer turned off/unavailable and 2) you can load it up with a lot of media and take it with you to someone else's house (or on vacation) and watch there.
Personally, I think those are great benefits and wish that Apple would normalize the

TV3+ USB port so that those of us interested in local storage could hook up a hard drive(s) size of our own choosing and bring this benefit to the newer generations of this little box. But I wouldn't bet on Apple doing that.
There has also been a long-term wish for some kind of centralized iTunes media hub solution from Apple, including many wanting it to be done in an

TV-type device (or in AEBS or Time Capsule-like devices). Unfortunately, that wish remains a wish (and IMO, a very good one). Maybe Apple will decide to make that one happen someday (but it will definitely not be within an

TV1 which is pretty much abandoned tech beyond still working with iTunes).
The relationship between iDevices and

TV1 is pretty much solely about using the iDevices as a nice remote (if you want to do that). No airplay, etc.

TV1 is very much "an iPod (classic) for your TV".
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Do not buy an Apple TV 1G unless that is exactly what you want and you have a good reason to buy one. They cannot drive 1080p without hacking and will never be getting another update from Apple.
This is correct and the hacking for 1080p playback requires an actual hardware modification... not just a jailbreak/software thing.