I've been toying with getting some sort of media interface for my living room for quite some time. My thoughts about Apple TV are the device is really limited unless you do some hacking (which I'm not opposed to). I do like the concept of WDTV Live especially because it now supports streaming, but it is more limited when it comes to its potential to view online content. Their price point is about the same. I would obviously love to just get a Mac Mini but I can't justify spending double or triple what one of these devices costs to do more or less the same thing. Thoughts?
I have a crazy setup on a 52" Samsung which consists of an Asus O!Play, WDTV Live, Mac Mini (09), Apple TV. The first 2 are very recent additions. It's really a function of what you want to do. If your main aim is to play HD video from a variety of places, and not iTunes or other protected sources, then the WD or Asus is what you want. They are both very nice. I started off with the Mini and XBMC/Plex which is pretty well as good as you are going to get. I then got an Apple TV and slowly but surely stopped using the Mini for video. It is trivial to install Perian, Sapphire, nitoTV, ATVfiles and Software menu. It can all be done by point and click (no Terminal). Of course you can also install XBMC/Boxee. Syncing the ATV is my preferred way and any non H.264 files can be placed in iTunes using VideoDrive ( great, great software) without transcoding.
Quite frankly I still use the ATV more than the rest combined. Sure the WD Live plays 1080p files, supports HFS+ USB drives and has wired ethernet. But it is not as elegant as the Apple TV.
The Asus O!Play is around $90 and the WD Live is $20 more. They play .mkv files fine and support idx+sub subs which is nice. They are quiet, require external hard drives and don't have wireless.
It's hard to recommend the ATV as Apple should have upgraded it by now. But in my opinion it's still the best of all of these media players, but it really needs to be upgraded. In short, wait.
My ATV now has an internal WD 320gig drive. Given that people are jumping at the WDTV Live and Asus O!Play perhaps you might find a good ATV for $100. That's probably what I would do.
philip