Really the answer to "should I buy Apple TV?" is the same answer to "Am I willing to spend lots of money on iTunes Store content?". So there you go, a quick reason to decide to spend the money or not. Considering Apple's history with the iPod video, the limitation in Apple TV to only play certain non-common codex's is unlikely to change anytime soon. On the bright side, hackers will probably eventually come up with easy methods to override this problem. Until then though, just wait. Wait until Apple TV 2.0 or 3.0 and wait until it becomes something that can truly play any video you want to play and not just a limited few. Force a company, not even Apple, to release a real solution to getting content from computer to TV easily that doesn't come with a bunch of rules. The only way to do that is refuse to buy these half-assed solutions.
Various links for info:
Gizmondo Review
iLounge's Top 10 Reason to Not Get Apple TV
Apple TV FAQ
C-Net Apple TV Linkfest
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