- Xbox 360 -- Offers HD movies and TV shows now, directly from Microsoft over Xbox Live and compressed with MPEG-4, for the same price that Comcast and others charge for PPV high-def.
- Apple TV -- Apple doesn't offer HD over iTunes. So, you can buy an SDTV movie or show from Apple for full price of a DVD -- then you'll have to purchase it again when you want it in HD.
- Xbox 360 -- Downloads directly from Xbox Live.
- Apple TV -- Requires computer to download from iTunes.
- Xbox 360 -- If you paid for something in the past that you'll own from now on (like a TV show), you can download it anytime in the future, saving you on harddrive space.
- Apple TV -- You can use your computer in conjunction with this, but you still have to supply the HDD space.
- Xbox 360 -- Paired with Media Center, can record and playback live TV. Media Center now comes with Vista Home Premium, which is what you're likely to get when you get a PC these days.
- Apple TV -- Can't do this by itself or from another PC. But I'm sure Apple can sell you The Office on iTunes. The Office plays on every Apple device ever released.
- Xbox 360 -- World class gaming platform. Excellent selection of mini-games for $4-$8, downloadable on Xbox Live.
- Apple TV -- Likely platform for mini-games. Doubtful to be a major gaming platform.
In short, Xbox 360 @ $399 gives you a lot more bang for the buck than Apple TV @ $299. Of course, if you want to watch The Office, there's no better place to do it than on Apple hardware.