1080p video is dropped from the list of features, but it's getting apps.
Mark this down as a pretty big disappointment. The new Apple TV, which is now named iTV, is losing 1080p. Apple's iTV will instead play only 720p content, which brings down the appeal quite a bit. This is all according to Engadget, who claim to have a reliable source on the matter.
You won't be surprised to learn that the iTV will be getting apps. It's not shocking, since the iTunes App Store is prevalent in everything Apple makes these days. If the iTV is a success though, it could mean good things for other, less successful app stores.
Again, this is all unconfirmed by apple, but what we're looking at so far is an iPhone 4 without a screen that costs around $100. It'll let you stream 720p content from the iTunes cloud and give you access to plenty of apps.