I have a 1st gen Apple TV and I am replacing it with the new one for several reasons.
- I hate having to "sync" to the Apple TV and manage what is on the device. It takes way too long and seems to start doing it at odd times, and I can never choose which of my computers will be the one that gets synced. So I just choose to not sync any of them and just do streaming only.
- While it is nice to have the internal storage for downloading directly off the iTunes store on the Apple TV, I never end up doing this because the interface is not very good for browsing the iTunes store. So the internal storage gets completely wasted.
- To compensate for no syncing, all my Macs are set to "Wake for network access" in energy saver prefs, which allows my AirPort Extreme Base Station to automatically wake up any Mac from sleep mode when the Apple TV wants to use it. This means I never have to worry about manually waking up a computer when I want to access it's media. This solves the whole "I hate having my computer on 24/7 to use Apple TV" complaint.
- I never actually purchase anything off iTunes (outside the App Store and iBookstore) and only like to rent content. I don't like the fact that iTunes music is not lossless, so I never buy any of it. All of the movies and TV shows have DRM, so I feel like it is a waste to keep them around when I can't play them back on anything but Apple players. So I rent everything that way I don't feel guilty about buying some DRM-filled file that I will end up deleting anyway. Love the focus on renting that Apple is doing now!
- AirPlay. There is not much I have to say here, but considering I own an iPhone and an iPad, and everyone I know who comes over has an iPhone, it is just an absolutely killer feature and pretty much stomps all over any of the other features for me.
I realize that not everyone has the same needs as me, but maybe the new Apple TV is just not made for everyone anyway? It is still a "hobby" for Apple and they feel like having no internal storage is the right direction, and I have to agree with them (as long as there is enough hidden storage for future expansion).
Not everyone is going to have an AirPort Extreme Base Station (or Timecapsule or whatever) plus a supported Mac that does "Wake on network access" but it does seem like Apple is kind of pointing at that as the solution for the "I hate having to turn my computer on to access shares on my Apple TV" complaints.
Not everyone likes renting stuff, and some people love to buy stuff right on their Apple TV. I personally never liked buying things on the Apple TV. If I can't rent it or stream it for free I don't want to deal with it.
Also, no internal storage means no more hard drive noise, no more heat, and the whole package is much smaller. Could they have added some solid state memory like the iPhone or iPad has (which means no heat or noise)? Well, of course they could have done that, but clearly that is not the direction they want to take it right now. Perhaps sometime in the future if there is still a demand for "syncing" (ugh, I have a headache just thinking about the memories of doing it with my 1st gen) then maybe they will start selling Apple TVs with a storage option. I doubt it though, seems they are preparing for the cloud stuff.
Other than #5, none of your reasons are problems alleviated by the new

1). You're not forced to sync with the old

2). This makes no sense. How exactly does buying a new

3). Again, this also makes no sense. Stream from the old or new

4). You are aware that I'll be able to rent the exact same content to watch on my old



Some of these reasons might be good justification on choosing between buying either the old or new unit but you already have on and nothing here is really any different between the two. You sound pretty stoked about AirPlay so they alone may be worth spending another $99. Unless you're able to stream content from apps other than iTunes AND the use of AirPlay is not restricted to a specific iTunes account (neither confirmed), I really don't see the advantage of it. If I have video/music on my iPad/iPhone, I also already have it on my computer and thus would just stream it from there.