Yesterday Apple CEO Steve Jobs really introduced a boat load of new stuff including a hardware pre-announcement, which is rather unusual for Apple.

Apple is now offering feature length movies in the iTunes Store. Currently 75 movies from Disney studios are available. Pricing is set between $10 and $15. What you get are movies with near DVD quality with 640x480px resolution.
Apple still did not give us a reasonable device to watch the purchased iTunes movies besides on the computer. The updated iPod video only features a brighter, but not larger screen and more battery life.
But here comes the pre-announced currently dubbed Apple iTV in to the picture. The long rumored Apple video streaming box is going to be available Q1 2007 for apparently $299. The Apple video streamer will have HDMI and should not be bigger than a Mac mini. The iTV marks the entry for Apple into the living room. And it looks very promising, because it is simple and small. Additionally the Front Row inspired user interface look awesome.
Only negative point is that Apple is not able to release the iTV in time for this Holiday season.