iFixit has done a tear down of the new device revealing 256MB of ram, 8GB of storage and an A4 processor. These specs show that the Apple TV is basically the 8GB iPod touch sans screen. They also find that the board has a spot that is basically ready to accept the 30 pin dock connector. I’m sure it won’t be long before some daring soul manages to get one soldered to it.
One of the bigger complaints, that is if you want to listen to most commenters on Engadget, is the lack of 1080p playback. That the Apple TV is only 720p is a complete non-argument because there simply isn’t a source of real 1080p content other than blu-ray. Stolen stuff doesn’t count. If you record over the air HDTV you’re either going to get 1080i or 720p content and there is basically no reason not to deinterlace the 1080i content into 720p since the vast majority of HDTV sets around today are going to be flat panel based. Netflix and Amazon HD streams are both 720p. In fact, the only 1080p streaming source I’m aware of is Zune marketplace on the Xbox 360 and I’m not aware of any other set top box that is allowed to stream Zune marketplace material and only costs $99.