[ZeroGravitas]

I saw an independant report stating that 1080p had minor stutters. Don't know if that's fixable. This is an early release but on the other hand they're pushing beyond the boundaries of what the hardware is designed for.

I'm also not sure what profiles it supports. Apple's software specs says Main Profile only, but they sometimes software restrict their hardware to keep support homogeneous across their lines (this appears to be the case for the 1080 support, they're just calling Apple's code).

[illumin8]

If you wait about 6 months, Apple will most likely release rev. 2 of the ARM based AppleTV, which is rumored to contain the A5 processor, which is based on ARM's dual-core design A9 architecture, and is supposed to be fully capable of hardware accelerated 1080p playback.

The newer hardware should be much more future-proof. It remains to be seen whether it will be easily jailbroken, or whether Apple will get tougher with security.