Apple's $99 pricepoint on the new AppleTV puts it fully into "impulse buy" territory. It also pulls the rug out from under Boxee and everybody else who thought they could be profitable by pricing themselves in the same ballpark as the old AppleTV.

I'll bet that most consumers wouldn't know or care about the 720p vs. 1080p issue. They just know that they can click a button and be watching their movies.