What I think I is interesting with this, it can be installed on an ATV as well. I am taking the day today to try to get boxee on my ATV working, which essentially does the same and more, but if that doesnt work I certainly take a look at this.
With Boxee, which works on Mac, Windows and Linux it is possible to watch full movies and TV shows from Hulu.com and Netflix (buggy, should be fixed soon) if your based in US. They even have some functions for people based in the UK.
The concept is relatively simple, they link together the content from all kinds of sources, hulu, youtube, netfix, flickr, mtv music, cnn, comedy central, add a "social networking" component and auto index content.
It seems to be that, what Apple TV ought to be to be successful. If I would be Apple, I would take a swing and buy it and integrate it into the Itunes Environment, even though it would eat from the revenue of the "Itunes Store" since it provides some of what they are selling essentially for free.