This is a user support forum not a venting forum. You don't need the USB cable to update unless something has gone wrong. You don't need to do anything at all. ATV will tell you when there is an update and all you have to do is click YES to update. Apple does not include the cable because it should not be needed. They provide the USB port update option to let people fix problems without having take the device in for service. The problem here is not with Apple. It is that you are trying to make something WAY more complicated than it needs to be.
I am going to try to turn his venting into an actual question, being that I have the same problem. I clicked "Yes, Update Now," and then it went through these screens with loading bars, etc. etc. It ended up with an image on the screen that showed that I needed to plug in the usb chord to an iTunes logo (Im assuming my Macbook Pro). However, I, also, did not know that a chord would be needed to update, and this particular chord did not come with the ATV.
My question is, Do i have to go out and buy this chord now? My internet connection is spot on, it just didn't work and now my ATV is unresponsive to the remote, it just shows that screen until it auto turns off. Is my ATV useless now until i buy that chord? Any help would be appreciated.
The chord is not needed to update. The connection may very well have been lost during the update process, which would make the device unresponsive and require a connection to iTunes (via micro usb) in order to restore.
Most do have one lying around and a lot of devices use this cable. They are also cheap should you need to buy. Or you can take it in to an Apple store and they can restore it for you.