I'm not at all bothered by a lack of MPEG2 support in the Apple TV. MPEG 2 is the past - MPEG 4 is the future. Since we have never donwloaded, created or stored MPEG2 movies (like most people), its omission is no big deal.
So why would one necessarily choose to locate the Apple TV away from the HDTV component cabinet? If it's wireless, I'm having a problem visualizing something about a network setup that places it elsewhere, but I also am sure I am missing something conceptual...I also was hoping it would double as a WiFi router, but that probably was hoping for too much for that $299 price point.
It certainly sounds like an updated Mac mini, an Airport Extreme (802.11n) and an Apple TV would make for a nice system. I'm envisioning using a Mac mini connected to the component cabinet at all times, but use the Apple TV to send video to other computers in a home/office. However, I guess one could skip the Mac mini and just use the Apple TV to stream everything to your laptop or other Mac or PC?
Can someone here sketch out a viable, cost-effective network with these components?