Great suggestions guys. I guess the logical move would be to get an Apple TV for $99. Maybe I can find one on sale.
Heh, I don't think you'll find much price variation on the current Apple TV 3, since Apple keeps a tight reign on resellers.
To boot, the older v2 model nowadays actually cost more than when new (I see them going for double retail, and even more, on Ebay), because the current model has not been jailbroken yet, and it may be a long while before it is.
But I do think you'll be happier with Apple TV -- the AVR versions only support audio, while with the little box you can also stream video and mirror your iPad's screen on TV (iPad 2 and above).