I want to love AppleTV, I really do. But Apple refuses to make it into a truly compelling peripheral. This week’s update was much needed – prior to this point the little TV box was completely forgettable. By adding Netflix support and focusing on rentals vs. purchases, I think Apple’s done a smart thing, but it’s only halfway there.

The biggest news is the new access to content. Streaming movie rentals is great, but I honestly wouldn’t be surprised to see Netflix offer this as part of a premium service over the course of the next year. TV rentals is great, but it’s only Fox and ABC for now (granted, others will probably get on board quickly) and there’s no mention of how soon after air we’ll get these. It’s likely a short window, but imagine what Apple could have if these were available the instant they aired. That would be something to get excited about, something that would take a lot of money away from cable providers and put it directly in Apple’s pocket.

Ever since I first used a streaming service, I’ve wanted Big Cable to die. I don’t use my TV because I have so many more options when I watch on my computer. I would love it if someone could provide all of those options, all in one place, all for one reasonable price. Would I pay $1 an episode if I could watch the shows I care about live? Of course I would. Cable companies seem to operate under the idea, though, that you should charge one customer for as many things as he might possibly be willing to pay for, instead of providing a service that’s so good that your one customer tells every single person he knows.

It looks like Apple has given the 40GB version of Apple TV the cement boots treatment. The model disappeared from the online store at some point overnight. The 160GB model, on the other hand, got a nice little price cut, down to $229. Previously it was the 40GB at that price point, while the 160GB cost $329.

Though there have been rumors of an Apple TV update recently, the hardware still hasn’t changed much since release. The newest rumor is that iTunes LP content has been specifically formatted for viewing on Apple TV, meaning once again that we could at least see a software update in the near future.

In the meantime, you might want to grab the reduced 160GB model if you’ve been considering it. It’s a pretty nice deal on the little box.

There have been plenty of rumors surrounding the Apple media event next week. We’re almost guaranteed to see an iPod update, and though people would love to see a tablet announcement, it doesn’t look likely. There is one product, though, that the world (including Apple) has all but forgotten: Apple TV.

The box hasn’t seen an update since release, really, and analysts think it’s a good candidate for a refresh at the music event. Gene Munster, an analyst for Piper Jaffray, points out that the delivery time for the 40GB Apple TV has gone from 24 hours to 1-2 weeks, which you’ll notice puts it past the media event. That could definitely mean the announcement of a new model. As far as I know, Apple TV doesn’t sell well enough to merit that kind of shortage, particularly during the beginning of September.

Unless Apple does something truly incredible with Apple TV, it will definitely get overshadowed by the addition of cameras to the Nano/Touch lines of iPods. In any case, we’re only waiting another 5 days to find out.