Lord yes. I was a big defender of ATV to begin with, but everybody else is passing Apple on this front. The PS3 and Xbox 360 have dropped in price and both stream Netflix. Blu-ray Disc players have plummeted in price and many stream from numerous sources -- mine from Blockbuster, Netflix, Pandora and YouTube.
The ONLY thing Apple has going for it is about the only damn thing ATV does -- streaming iTunes content. I don't buy much non-music content on iTunes, and this is a main reason why. I can get Blu-ray Disc movies almost always for cheaper than the iTunes HD movies if I shop around. Considering that BDs are better quality and are more portable, ATV has much work to do.