Apple have just announced their Apple TV replacement. The device is one quarter the size of the first generation unit. It has built in power supply, HDMI connector, Ethernet and 802.11n Wi-Fi.
Described as 'silent, cool and tiny' gone is the ability to purchase videos but now renting a TV episode costs $0.99 (ABC and Fox in the US to start with).
I addition to renting Movies and TV from Apple, US users can stream from NetFlix too. YouTube HD is supported and FLickr and MobileMe plus local music and video too...