For good or ill most people are not like you. Many people, including me:
1. Don't want physical media. We already have shelves full of books or CDs or vinyl records and we don't need collections of anything else.
2. Don't want subscriptions. It's bad enough we have to deal with the mortgage and the utility bills and the phone bills. We don't want Netfilx or Hulu+ or anything else that we have to pay for forever.
3. Think anybody over the age of 16 who owns an XBox or PS3 is strange (although I know people like this). Watching Netflix or DVDs is not an inducement to buy a gaming console (see #1 and #2).
4. Don't want to rip DVDs in OGG whatis or XMBwhatever and then huddle around the computer to watch them. None of us live in a dorm room and few of us are very technical.
What we may want is something cheap that easily attaches to our TV. Something that lets us inexpensively watch stuff that we may occasionally want to watch but can't now. I realize the people you listed don't need an appleTV. Neither do people who spend $100 / month on cable.
I am not sure yet that I want one, but this comes closer to what I want than anything else so far. Best wishes.
So you dont want physical media, or to pay for them and you dont want to stream the media?
Apple TV isn't really for you I'm afraid due to being a physical device that you stream paid content to.
And a great deal of people over 16 own games consoles, its not that strange, its just how modern culture is.