I can't understand what the issue is. The syncing options haven't changed in iTunes. Now instead of deciding whether you want to see your streamed library or your synced content, you just decide whether to keep iTunes open or not. If iTunes is open, you see everything, and the synced stuff still plays from thetv's HDD. Either way the list is seamless.
I like this new way much better. Now I don't have to open iTunes AND select a source, I only have to open iTunes.
The apple TV device in itunes now only has the following tabs:
Summary
Photos
Missing are the Music and Video tabs so I'm not sure how to put specific movies or tv shows up there now.
anybody else see this?