I don't exactly watch TV. Certainly not in the traditional sense. Network TV is something I see and overhear in bars, or at the airport. Cable TV is something other people have that I see if they've recorded something to TiVo.
I just bought a 32" flat screen TV (laughably small, I'm told) so I can watch new DVDs and old videos; my DVD player and VCR are both connected to it.
So far, so good.
But I also use iTunes, and often buy TV shows and movies to watch on my iPhone when I travel. I've thought about watching the movies at my desk on my iMac but...I spend all day at the desk working, and my little office isn't exactly a place to hang out with friends and watch a film.
Apple TV is a way to watch iTunes downloads and rentals on a TV in another room. But I've been reluctant to buy the little Apple TV device (with its not-so-little price tag) because I couldn't quite believe that it could get a movie from my iMac to my TV (two rooms away) without loss of quality.
Now I have a book that explains it all: The Apple TV Pocket Guide by Jeff Carlson (PeachPit Press, 2008)! And I've put Apple TV on my Christmas list.