If you're into music and you listen to music at home, what's your alternative? An iPod dock sitting on my stereo rack? Then i have to walk up to the thing and spin the dial on a little bitty screen to play music (which is somewhat akward when its sitting on a dock). Or how about Airport Express? Nice, but now i've got to go to my main computer to play music, or keep a Macbook in the living room as a remote.
You can control the Airport Express via an iPhone or iPod Touch running the Remote app. Considering its analog output is junk and and the digital signal requires a DAC input of some kind, I'd still prefer the AppleTV, given it can always be hooked up to a monitor at a later date for more functionality, but if you already have a stereo with a digital input and an iPhone, that might be all someone needs. I've got an AppleTV in a music only room right now, but some day I plan to get a flat screen to hang above my piano like a video wall frame picture (right now there's an actual wall photo hanging there) at which point I'd just connect the AppleTV and I can have it change photos or watch tv in yet another room.
I am concerned, however, about how a lot of movies have been switching over to buy only lately for no apparent reason. Most of the Disney movies are buy only after formerly being available for HD rentals and some others like The Matrix and Superbad are also buy only for no reason...they're even in the "Must See HD" category, but you can no longer view them in HD. It's very odd. I haven't heard of anyone getting a legitimate response from Apple yet why that's happening.