Is Apple loosing interest in Apple TV?

... Or is their development team too small to focus on several products at the same time?
This of course is my perception of what's going on, but I am wondering what future Apple TV has.
Apple TV [The original] was introduced to bring iTunes to your entertainment center with a few other capabilities. This was an exciting prospect for me, my iTunes library contains my entire CD collection, imported as WAV and AIF. I also have a lot of videos that I could only enjoy on my computer. This version of Apple TV had a couple of limitations that I hoped could be over come, such as the ability to play only one music video at a time, and the limited internal storage. I would really like to have my content local to Apple TV so I don't have to run upstairs and wake up my laptop every time I wanted to stream something. Besides, I get an occasional dropout during extended listening.
I know that Apple has been aware of these desires, and probably many others, but they are always silent on what their intentions for future upgrades... even many times after the upgrades are released. I fear that we will never see the capability to add an external hard drive, because in Apple's eyes that will kill any desire for the 160GB model.
Apple TV Take 2 was introduced with much celebration because it opened a new market for Apple. I'm not sure how successful their movie rental business is, but since you don't here much about it I'm guessing it is not up to Apple's expectations.
The Take 2 updates have all appeared relatively minor, and the demise of .mac facilitated the last update. I don't think that many of the requested updates would be all that difficult to implement and they would make Apple TV a much more fully featured product, I am just wondering why we are not seeing these upgrades.
Think how exciting it would be to browse the web using your iPhone or iPodTouch as a remote for the Apple TV! I don't dare dream of that one!

I think pricing of rentals is the main problem. NetFlix new Roku player just blows the TV away on this point.

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