However, I wouldn't be surprised if someone was able to use the SDK to write a XBMC-like app.
Uhm what? I know the studios are doing their best, but fortunetly non-DRMed video isn't illegal yet. Ripping your own dvd, recording from tv, public domain or cc licensed footage, buying from independent distributors or the authors themselves, video blogs, conference recordings and learning material etc.
Tell me with a straight face that Apple gives a shit about DVDs.
>recording from tv
Fumbling around with capture cards is roughly the opposite of the Apple TV's ethos.
>public domain or cc licensed footage, public domain or cc licensed footage, buying from independent distributors or the authors themselves, video blogs, buying learning material etc.
Vimeo is already a pretty polished UX for most of the independent film use cases. Offline is a concern on mobile devices but not really relevant to the Apple TV.
Also, let's be realistic here, people aren't watching public domain content on their couches day in and day out, they're watching big-name TV shows.
If I got videos from a kickstarter?
If I make videos myself and want to show them to friends?
Are stand up comedy fans, kickstarterers, and film creators not part of Apple's target market?
They are, but only if they buy/sell on iTunes.
Someone correct me if this is no longer true, or if I misunderstood it from the DeCSS days.
You can license movies from creators in ways other than the general release, and I have worked with content obtained this way in auditorium film screenings. You definitely wouldn't use an Apple TV for that, though, you use high-end rackmount DVD/Blu-Ray players, HDCP media servers, or specialized cue playback software so that the audience doesn't see you fumbling with controls - they're on a dedicated interface. Granted there are scenarios other than public exhibition, but if it's for consumption in your living room then it's pretty much by definition general release.
Apple is one of the first movers in killing physical media. At this point I don't think you can even buy a Mac with a built-in DVD drive; facilitating playback of ripped DVDs would be pretty low on the priority list.
Closest thing I can anticipate would be a way to play videos from your Photos library - intended for the ones you shot on your iPhone. It would probably be possible to import an unencumbered video file there, and stream it across your house with Home Sharing, which has been built into the iLife suite for a few years.
Yeah, you still can. But probably for not much longer. Your overall point is quite valid. http://www.apple.com/macbook-pro/specs/
If Apple doesn't allow this, I'm not buying an Apple TV.
the limitations aren't technical, they are overzealous UX and business limitations.
Apple TV has a difference audience, than XBMC and PLEX, which I doubt will manage to get. All in all it's not a very successful product so far, we'll see now.
I guess it depends on your definition of "successful". Apple TV has sold over 25 million units. http://recode.net/2015/01/27/apple-tv-hasnt-changed-in-years...
Watching subtitled video is the main reason I have a Mac Mini plugged into my TV.
Plus the fact that some content is not readily available in my country, plus the fact that I must change format for huge load of media makes the entire thing a deal breaker.
I won't even start mentioning what XBMC can do that AppleTV can not because it's embarrassing.