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We got it for my parents mostly because they wanted Netflix but didn't want a PS3 or XBox. It works really well for them, they watch Netflix, and stream music on it constantly, we've got their sharing network set up as well so they can pull stuff off their pc and watch it on the TV.
Like all apple products your return on it is greater the more apple and itunes usage you have. My folks don't like to torrent so they buy things on itunes all the time, and the whole Apple TV gives them access to TV shows and stuff (particularly UK series) that they don't get on their regular TV package.
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~ Just another noob looking for a clue
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