Ok, so now I'm officially confused. I'm moving in a month or 2, and I really want to discontinue my cable service. Right now, I don't have an ATV, PS3, or Xbox360, just a Wii. So with all the recent developments, which system should I go with? Gaming isn't exactly as important to me as it used to be, so it would mostly be for playing media. HD would be nice, but I mostly just need it to play avi's and the such...
If you like disc-based media, the PS3 is the way to go. I love Blu-Ray, it gives fantastic quality for only a few dollars more than a regular DVD. Highly reccomended if high-quality video is your main priority and you don't mind putting a few discs on a shelf.
If you're more the "no disc" type of person, it comes down to the ATV or the 360. Both Netflix and iTunes have limited libraries, so that's kind of a draw at the moment. If you want a standalone box, I'd say get the 360 and load your AVIs off of thumbdrives... if you will consider setting up a small network to stream stuff into the box, maybe AppleTV is the way to go.