It is basically a digital TV service delivered over the internet. What kind of programming will be available with this service compared to your traditional tv provider is unknown but we sure like the idea of streaming music, video, photos and TV all on a single box. Now if it only supported 1080p video.
Get a little more out of that Apple TV. It looks like Apple TV will be adding YouTube access and a 160 gb hard disk to the current lineup. If that is not good enough for you, there is also talk that AT&T is working with Apple to add IPTV capabilities into Apple TV. What is IPTV?