
1- Play DivX: I spent a VERY long time ripping my DVD collection to DivX as a 2 pass Home Theatre profile, and I will *NOT* be going through that again just to transfer it to H.264. I mean, *come on*.. iPods play MP3s.. that is why people bought them. Apple TV not playing DivX is like an iPod that does not play MP3s.
2- Let me play DVDs. Really.. I want to *play* DVDs. All you need is either a slot load, or a remote play facility from my desktop. Low an behold, you invented wireless remote optical disk mounting for the Macbook Air, now bring it to the Apple TV.
Unless these things find their way into an Apple TV, there wont be one in my lounge room to dislodge the incumbent player, even if it is smaller, sleeker, and easier to use.