Released in March, Apple's third-generation puck retains the form factor of its predecessor while adding 1080p playback. The real draw remains the same, though: seamless integration with iTunes, iCloud, and the rest of the Apple ecosystem. While recent additions, like a dedicated Hulu Plus app, certainly fill in some much needed viewing gaps on the box, it's really AirPlay mirroring via Mountain Lion that unlocks the most exciting streaming options. In short: If it's on your Mac, it can now be on your TV. (Note: Some older Macs aren't AirPlay compatible even if you do upgrade to Mountain Lion.)
AirPlay itself streams music, video, and photos from iPhones and iPads so easily that I've actually done it accidentally. And the ability to play and store movies and music from iCloud is another great added convenience for iTunes users. Of course if you're not iTunes-dependent, you'll still get a sleek icon-based menu and solid lineup of streaming apps like Netflix, Hulu Plus and Vimeo. But even with all these recent improvements, there's really no compelling reason to pay $100 unless you're an all-Apple (or mostly-Apple) household.
WIRED AirPlay is tops for wireless streaming and can deliver high-quality audio straight to your home theater. Awesome dedicated app turns your iPhone or iPad into a remote. Easiest setup of the bunch. iTunes store purchases made on the Apple TV can be synced directly to your iPad or laptop.
TIRED Still limited appeal to Android and Windows users. If you TV doesn't have an HDMI port, you're out of luck. Your couch will eat the tiny remote. No ability to customize menu.