WHY won't AppleTV support other video file formats?

Question

I understand that the latest version of AppleTV STILL does not support the variety of video formats that are playable in Front Row. I use Front Row all the time, I just don't understand why Apple is restricting AppleTV so much. File conversion is too time-consuming and more trouble than its worth. So if anyone out there at Apple is listening: I will not buy an AppleTV until it can play other file formats, and not just the (extremely limited) selection that they want to sell me from the ITunes store.
If anyone else out there can explain this policy, I would love to know the reason.

Answer 1

I know it's only my own opinion but I'm not to sure what all the fuss is about formats. The main compression types in use are mpeg. The tv supports mpeg4 within the restrictions placed on it by complexity levels due to hardware limitations. Mpeg2 as pointed out needs licensing and anything over SD is likely to require too high a bitrate for the tv. Mpeg1 is just plain useless for large screen viewing.
The lack of support for container types seems quite reasonable to me.  support their own container (.mov) and the standard mpeg4 container (.mp4), which should really be enough. You can add plug-ins for other container types to your computer which allows them to work in front row for example, but allowing users to modify software on consumer devices is not all that practical and not a road  have chosen to go down.
In producing video for my own use I use a variety of formats that suit my own needs, if I were producing these videos for distribution I wouldn't, I'd choose .mp4 and then anyone could watch them.
May I suggest that it isn't 's fault you can't play the video files you have acquired, but those that have produced them who have chosen to use a limited delivery method.