I’ve been an Apple TV fan since the second incarnation of the set-top box. And the third gen model (mine arrived Thursday morning) is even better, thanks to an improved interface and, at long last, support for 1080p programming.
Yep, the Apple TV now supports iTunes movies and TV shows, Netflix, Vimeo, photos and more in HD. However, not all content is available in the highest resolution. You should read the fine print at the iTunes Store to make sure that you’re getting a 1080p version and not a 720p version.