I know you love your Apple TV. I know you love streaming all those videos to your big screen TV, but it kind of sucks that anything you download off of iTunes is standard definition. What’s the point of owning a HDTV is you can’t always be enjoying your content in 720p or better?
Apple has heard your cries, because iTunes may soon be bombarded with an outpouring of high-def content. The rumor mill is saying that the iTunes store will get some sort of “major update” later this month, loading up with loads of commercial 720p HDTV programming. There’s no mention of 1080i or 1080p at this point, but 720p is definitely a step in the right direction.
Nothing needs to be changed in the hardware department, because the AppleTV is already capable of playing back 720p video.