Thanks for your replies. I thought that might be the case since ATV4 is so new and the previous versions of ATV didn't store anything.
I’ve tried “home sharing” from time to time, but HS has problems that make it not very useful for me. I’ve used HS both between my macs and also from mac to ATV. One of the biggest problems is that home sharing never increments play counts on my iTunes server. Besides the fact that I like to see what music I play more than others, this issue means that podcasts are not marked as played. So I end up hearing programming multiple times in home sharing and then I’ll still hear it again when listening to my iPod. It annoys me enough that I just plug in my iPod to my macs to hear media when I am not using my iTunes mac. I tested HS again with ATV4 and it still doesn’t work right.
For my set up, I have my previous (older) MBPro I use as my music server connected to my TV via HDMI. So I don't need or use the ATV to play thing locally. My ATV is connected to my router via ethernet. My newer MBPro for general use, uses the Netgear wireless router connection.
My current setup with Mac/iTunes + HDMI is a little kludgy since one has to keep going to the the mac/iTunes to find and pick what to play. I have a collection of music videos from CD/DVDs that I bought, most of which aren’t on the internet either. I even have a few DVDs of performances that unfortunately were PAL format and not playable on my DVD player. So I copied them to my Mac. Don’t watch visual media in iTunes too often because of the inconvenience.
Direct internet streaming works quite nicely with any ATV. Streaming wirelessly from a local Mac to an ATV works great at my work for running presentations. But at home for entertainment, streaming wirelessly from a Mac to ATV is pretty inconvenient since one really has to be at their Mac to do much. I stream some programming from internet thru my Mac to my ATV, but performance/quality isn’t ideal and can vary with internet/wireless and mac issues. Streaming from a mac is obviously needed for the large amount of media on the internet that doesn't have streaming apps, in my case like my local independent public television KCET and This Old House website I like. Video playback is never as smooth when using mac/ATV combination.
In the long run, I certainly hope and expect media storage on ATV4 to change. My 64 Gig iPhone stores data and doesn't streaming from the internet or Mac. Since TVOS is based upon IOS and the device has the same amount of storage, it seems reasonable to expect that some apps will be able to store media in the not so distant future. If Apple doesn't have anything fairly soon, seems like a great opportunity for 3rd party. (VLC perhaps? its already on IOS)
My preferred set up would be to copy any video related media from my mac/iTunes to my ATV4 so I can just use the TV+ATV with visual media, and use my Mac/iTunes which is connected to Stereo system to use with audio media. At least this was one of the main reasons I bought the ATV4 instead of sticking with the previous ATV.
Anyway, Thanks for your replies.
my $0.02