I still wouldn't buy regular episodes with that quality, especially since the playback in iTunes is so ridiculously poor. I'm much more likely to watch them with Tivo, or wait to buy the DVDs when they come out.
However, I AM very interested in the potential, and the home media aspects. I'm *very* interested in the idea of having my media library centralized and available when, say, I'm in the bedroom (where my Mac Mini is hooked up to the TV and I've been trying to do something like this with my ATI Remote Wonder remote). I like the idea of using iTunes to manage my media library, and of using Front Row to access it all. And if my iPod can play them when I'm on the road or at a friend's house, so much the better.
Apple seems like they've taken a big step, but are only halfway to where this will take off. In my opinion, they'd need:
- Higher quality downloads (ESPECIALLY if they can get studios to allow movies for download)
- MUCH better variety of video downloads
- Better import options (including converting existing media to whatever iTunes "wants" to play)
- DVD import. This would require DRM'ing the imported video somehow, but as long as it's not ridiculously crippled, it'd be acceptable to me.
- Front Row on Mac Minis (it's definitely a killer app for that market. The only reason I can think that it seems to be downplayed at the moment is that the Minis just aren't fast enough to run it smoothly (looks like it does some Core Video effects and things). Once the Minis are powerful enough I'm sure it'd be marketed heavily)