Zack P. wrote:
I have about same doubts when comparing ATV and Mini.
1. ATV has HDMI, Mini doesn't
2. ATV has 160 GB HD and Mini 120
3. ATV costs 350 versus 850 for Mini (Canadian pricing!), that is more than twice cheaper
4. ATV has digital audio out (optical, 5.1)
Just to clarify, the Mac mini also has optical out (it's the same jack used for the analog stereo output jack... you need something called a 'mini TOSlink adapter.' Used to be hard to find them, but now I've noticed a lot of TOSlink cables just come with a mini-TOSlink adapter in case it's needed. My own Mac Mini is connected to my home theater system this way.
Also the Mac Mini does have both Firewire and USB 2.0 ports... so connecting an external hard drive to increase the storage is no problem. There are a few companies that make external hard drives that look just like the Mac Mini and are designed to stack. LaCie makes one, but I really like the ones from NewerTechnology (their website is macsales.com. They call it the 'ministack').
But essentially you've nailed the real issue... which is that a Mac mini is, well, a computer. It can do anything any other Mac can do. But it's designed to connect to a computer monitor -- not to a TV. A lot of TV's have an input for computers, but they are almost always the 15-pin D-sub connectors (aka 'VGA' connector) and the TV usually either (a) is very fussy about resolutions they will accept or (b) downscale the picture to something they can handle.
AppleTV is not intended to work as a general purpose computer -- it's intended to work like a giant video iPod with an HDMI output.