True, Apple TV does not currently support 1080p. It displays at 1080i; which, at $229 for such a small box, I would have thought there'd be more interest in making it something more useful -- like a Media Director.
Looking at the alternatives, a Fiire Box for $499 or similar barebones PC for $400 - $500, I'm guessing that there is some other reason why people aren't snapping up ATVs and hacking them into MDs.
Maybe I'm missing the point. Is there some other preferred hardware that I'm overlooking?