Yet another situation came up just last night — we were watching Hulu on the Mac Mini and a dialog box popped up regarding a software update, right in the middle of the screen. This meant taking out the iPhone to try to get the box to go away, and then the wireless keyboard to type a password to do the update. Definitely annoying in terms of trying to just relax and watch a show.

Yes, totally agreed the Apple TV needs content — it’s the free Hulu stuff that’s most appealing. I hold out hope that Apple has that content subscription concept in the works (say a monthly fee for access to certain channels) — but on the other hand, with the cable companies and studios starting to flex their muscles about restricting their content (WB and Netflix, Disney negotiation with Starz / Netflix, Comcast owning part of NBC)… it’s a pretty safe bet content wars will get more intense in the near future.

I completely agree that it’s all about the UI. My girlfriend’s mother figured out how to rent a movie on my AppleTV in minutes. She still doesn’t know how to watch an episode of the Daily Show I taped last night on my EyeTV on the mini.

I continue to believe that the only thing AppleTV is missing is content. If you could rent or buy any movie you want, not just Apple’s limited selection, and you could pay some sort of fair monthly subscription for the five or so TV shows you actually want to watch, Netflix and Blockbuster, Comcast and all the other cable companies would all be doomed.

Which is why that hasn’t happened, I suppose.