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Apple updated to a completely new platform with the new AppleTV which made the original one completely obsolete. They could do that because the original didn't really sell well. Unlike a successful platform like iPhone or iPad, if you manage to establish any sort of user base, you keep them until your platform is successful enough to convince users to move with you.

After trying just about everything software-wise with AppleTV 1, a move to a cheap iOS based device (cheap because there's no onboard storage), they sold pretty well. It's not a blockbuster but Apple finally established a million plus sized user base. I doubt they would release a new AppleTV that would throw out that new user base.

A hardware update isn't necessary to achieve the next steps that Apple might have planned. I expect that iOS 5 will enable AppleTV to move forward.

I still don't see native apps as part of the equation. Instead, I foresee Apple continuing to position AppleTV as a vehicle to get your iOS apps on a big screen from your iPhone, iPad or iPod touch. AirPlay launched this paradigm. I believe that one of the major features of iOS 5 will enable developers to set the criteria for a second screen on their iPhone/iPod/iPad apps.

An AppleTV with apps of any complexity would require a touch based remote that would be more expensive than the AppleTV itself. So instead, use existing touch devices for the processing and controlling of apps and AppleTV as simply the method of getting them on to a tv.

As such, I expect no new AppleTV hardware for at least another iOS cycle.
 
Could an ATV be jailbroken to show HD at 1080?

I would guess the answer is no, but I wonder why not.
 
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