So you think it was designed with music in mind, not video?
Anything that gets connected to a TV is for visual, anything that is connected to a HiFi is for audio.
It was designed for both. Using your words, it connects to the TV and the HiFi, so its visual and audio. Is it that hard to understand that it requires the TV connection for the user interface regardless of how youre going to use it? Its called AppleTV because it requires a TV to provide the visual portion of the user interface, not because its designed for watching video.
Airport Express meets the music requirement. Apple TV meets the visual requirement.
I already had a way to get music from my computer to my HT system (baluns that convert line level signals to twisted pairs, then run 100 of Ethernet cable to my HT), so I had a similar capability to the Airport Express. However, it was not a very satisfying solution (as I believe many Airport Express users have found). First, I couldnt see what was playing and couldnt control iTunes from my living room. I actually tried running video from my computer to my TV, but it didnt work very well (even though I was only listening, I still wanted a display connection). Plus, it required my computer to be awake.
The clincher, though, was that my wife would never jump through the hoops required to listen to music. Shed have to walk upstairs, wake up the computer, start iTunes, select a playlist, tell it to play, walk downstairs and setup the receiver. That may not sound like a big deal, but my wife just didnt want to mess with it, so she would only listen if I was there to fire the system up. The AppleTV (along with a Harmony remote) has made it very simple and she listens all the time now.
I use the music feature a lot too, but are you seriously telling me that the prime reason you'd buy an Apple TV is for music and photos?
No! I never said it was for music or photos first. However, music was the main driver for me. I did want to be able to convert my home videos for AppleTV so my wife could watch her horse show videos without my having to burn them onto DVD. So, I got it for music first, home video second and photos third.
My point in all this is that there is absolutely nothing about the original capabilities of the AppleTV that favors video over audio. In fact, the audio features appeared to be better realized, so you could probably argue that the original release was more suited to music (Im not making that argument, though).
Also, when you consider that the AppleTv is cheaper than many iPods have been, its not outrageous to think that people would buy it just for music. It is an elegant solution to the problem of how to listen to the music that resides on your computer through your main sound system.