I consider myself a fanboy but Peter is at another level. ;\)

He's right though. If you're committed to iTunes, then the AppleTV is great. If you hate iTunes, don't get an AppleTV.

Also, bear in mind that you can connect an iPhone, Touch or video iPod to a TV. If you want an experience beyond that on your TV, then consider an AppleTV or similar box like a Roku, Vudu, or other streaming box. Both PS3 and Xbox 360 can do similar things.