I have a lot of episodes of Top Gear I've bought off iTunes. I'm just wondering if I will be able to watch the bought shows sitting on my Mac's hard drive or is the only thing I can watch rented content now theres no syncing and buying on the ATV?
You can stream anything from your iTunes library to the Apple TV, you just cant buy or store anything on the device. This is all done on your PC through iTunes then streamed across when you want it.
Yea basically it's now just a viewing device to help you get your media onto the big screen. Whatever you have in iTunes is viewable on the new apple tv. You just can't store anything on it.