Unlocked Apple TV 2 or ATV3 for grandma?

Hello All!
Awhile ago I came across a good deal on an unlocked ATV2. I decided to get it for my grandma. However I haven't been able to set it up for her yet because she has a giant tv cabinet.
Her TV died yesterday, so today is the day! I got her a new tv and a neighbor is going to help move the cabinet. But now I'm torn. I'm still getting used to the unlocked ATV2 myself and I fear it might be too complicate for her.
And I want it....
So I was thinking of going an getting her an ATV3. Could I convert media files via handbrake, put them in her computers iTunes library and she could stream them to the tv? Does the computer have to be on? Any thoughts on this?
Sorry for rambling, I want her to get a lot of use out of it instead of complaining about cable. Thanks!

Welcome to the Apple Community.
Yes the Apple TV streams content from an iTunes library on a computer that is switched on.

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