I have been using Apple TV stream both Netflix and iTunes movies, as I like the idea I can view any movie at any time...
Streaming from iTunes has worked flawlessly, which is good.. The only downside it gets quite expensive to get new movies (especially HD), so I decided to get a Netflix account..
The Netflix (Uk), issue being watching a HD movie the system will stop streaming up to a couple times a movie.. Then you have to start movie and jump to location you where last at where.. Fortunately the latest iOS update did manage to save location, so thankfully you don't need to fast forward to location, but process becomes very annoying when you watch a film)
So in summary iTunes becomes quite expensive, so good for a few films but not ten films a month..
Netflix is good for older movies, unlimited in number you can watch, but has such poor connection issues.
1) Apple improved its Netflix app I would give it another star.
2) Apple had other Apps from love film (and worked flawlessly), I would give int another star.
3) Apple had BBC Player and iTV Player, it would be a perfect system...
So at the moment I have a device I mainly use for Netflix (a bit flawed) and iTunes (expensive, but works).
I believe Apple need to improve its regional awareness, as a lot of Apps are aimed at American Market (MLB.tv NBA)... Where as UK market you should have BBC Player, iTV Player...