Can Apple TV be used without streaming feature?

I use my PS3 as my media player. Sadly, I can't play my iTunes movies and TV shows on it. My only options are to either hook my Mac to my HDTV (which is not convenient at all), or to get an Apple TV.

My question is, If I get an older model Apple TV, can I store whatever I need inside it and watch instantly on my HDTV without using any streaming features, or streaming is required to pair the Apple TV with the iTunes library or something??

Thanks.

Mohammed.