Just to clarify: The ATV won't play anything that you can throw in iTunes. It has certain bitrate limits, etc... But the good news is, that if you get a video into itunes, you can just right click it and hit "Covert for Apple TV" and bingo, it will work. That is just a quick and easy solution, which is fine for most things. But if you want top quality for movies, it is better to convert using Handbrake or VisualHub, as you can really customize your compression.
Regarding the original post: It just depends on how much ease of use and "plug and play" functionality you care about. Sure, the Mac Mini will play many different formats, but you still have to have a keyboard and mouse to set things up, and probably to keep things going day to day. The ATV on the other hand, has one elegant interface, which can be navigated with one remote. Soon, you'll be able to do everything under the sun with just that tiny remote. (rent, buy, etc... from the itunes store)
It really depends on personal preference. I am willing to sacrifice the playback of divx to be able to sit down at my couch and call up a movie without fooling with a keyboard/mouse. To each his own...
Regarding the original post: It just depends on how much ease of use and "plug and play" functionality you care about. Sure, the Mac Mini will play many different formats, but you still have to have a keyboard and mouse to set things up, and probably to keep things going day to day. The ATV on the other hand, has one elegant interface, which can be navigated with one remote. Soon, you'll be able to do everything under the sun with just that tiny remote. (rent, buy, etc... from the itunes store)
It really depends on personal preference. I am willing to sacrifice the playback of divx to be able to sit down at my couch and call up a movie without fooling with a keyboard/mouse. To each his own...