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Its specs indicate that you can only access movies that have been synced and this is limited to 50 hours worth due to the size of the included HD. So it doesn't make a good front end to an large server or file store of ripped DVDs.

Interesting. That's not what I'd heard. I read the Mossberg review, and they seemed to indicate that the only thing that wouldn't stream was actually photos. I would be extremely surprised if video didn't stream. Like you said, you wouldn't be able to fit most of your media on that small a drive.

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but unlike iTunes, it doesn't seem like it will suppoort user-supplied video as well.

Why not? Can't you make an H.264 file? I thought that as long as iTunes could play it, Apple TV could play it.
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Matt