How Apple could make the newly cheaper Apple TV useful

ARS: Though constrained supply led to rumors of a possible upgrade to the Apple TV being announced at Apple's "rock and roll" event, no such upgrade was announced.

Today, however, Apple dropped the lowly 40GB Apple TV from its product list, slotting the previously $329 160GB model into its place at $229. Now it sits alone as the only Apple TV model, but is the price drop on the high-capacity version enough to attract more consumers to buy the digital video playback device?

Apple still calls the Apple TV a "hobby," but we think some feature additions could really kick it into a full-fledged, mass-market digital video device.

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