Apple TV 2 versus Component AV Cable from iDevices to TV

Question

I'm comparing the features and compatibility of the Apple Component AV Cable ($50) versus the purchase of an ATV2 ($100); and I can't find anything that ATV2 provides that the cables plus and iDevice fail to provide.
If you have an iPad, iPhone 4, or iPod Touch that supports HD content, you can rent HD material from the iTunes store from your Mac or any of those iDevices. You can then use the Component AV cable to connect your iDevice to the Component jacks of the TV and audio jacks of your receiver (or TV, I guess). I think this scenario shows parity between ATV2 and the cables.
This purchase via the iTunes store can be transferred around to your devices, so you're not tethered to your TV room or even your home since the rented file is stored locally. We've started a movie then realized we'd like to move (from living room to bedroom) or even leave the house and finish the movie on the iPad. But renting (streaming) HD content directly from the ATV2 will play only on the ATV2 and is not considered "portable" since it must reauthorize rentals each time you press play.
I think that second scenario above gives the cables one advantage over ATV2.
What ATV2 advantage am I not considering?
I know that experts will shatter this argument with the 1080 vs 720 output to the big TV. But since TV is held to 720 and my eyes can't distinguish 720 vs 1080 on my current HDTV, that argument is not yet valid for my comparison. When I purchase a newer HDTV, the $99 for the ATV2 will be negligible, and I'll still have the cables for the older TV in its new resting place.

Answer 1

- no HD output from iDevice... the dock supports VGA 1024x768 (if you do the calc it's like 614p).. 720p HD is 1280x720.. so not quite HD.. only 480p (SD DVD quality) with component AV cable.. so no HD output from.. non-starter for me.. i have a 58 inch HD TV and i want to get my use out of it..
- Dolby digital 5.1 audio out is missing from iDevices.. non-starter for me!
- streaming from a computer means you have potentially limitless on demand storage capacity for movies you own (i have about 2TB of music vs 64GB for the largest mobile device)
- you don't have to manage files on and off the mobile device because of limited storage capactity.. i just want to sit down and have access to everything i own.. scroll and play.. not connect to computer, move files, connect to TV and have to repeat that process all the time.. argh!
- if you leave with your mobile device everyone else in the the house it out of luck
- you actually need to be connecting that cable all the time.. have you heard about airPlay? that is a much better solution coming in iOS 4.2.. that will at least allow you to beam the video wirelessly to compatible AV Receiver, appleTV, docks and other compatible devices (Denon is already fully on board with this for 2011)
- you have to get up from your chair in order to ffwd, rwd, next etc.. argh!.. with apple TV you can use remote or use you iDevice as a remote or logitech remote that controls your whole AV system
so the iDevice solution is cheap.. but as usual you get what you pay for and there is downside in quality of video and audio and in convenience, amount of file management necessary, storage capability etc
Message was edited by: tmartine