I have the 1st generation apple TV and it hasn't let me down. I don't know many changes about it, but I've heard that some are good and some are bad. The big question though is, is it worth it to upgrade? Thanks.
If you like to store your media on the Apple TV 1's hard drive then keep it. The Apple TV 2 can only stream media, it does not store media. It does have built in "apps" for MLB TV, NBA TV, Netflix, YouTube, Vimeo and a couple of others.