Update: Check out three related videos with more info on the forthcoming Apple TV upgrade: Steve Jobs comments during his keynote address; the video guided tour on Apple's Web site; and a summary from CNET's Donald Bell. This post has also been updated since its original publication with additional information.
The Apple TV just got a whole lot more useful.
Steve Jobs unveiled a major feature update to the Apple TV today during his Macworld keynote address in San Francisco that aims to transform the device from a TV-based iTunes media viewer to a more full-featured media-on-demand device. The hardware will remain the same, with the entry-level 40GB model dropping from $300 to $230, but a free software upgrade--available in two weeks--will add the following functionality: