I guess since I didn’t drink the kool-aid, I don’t get it.

$300 buys you, a slim Mac Mini. You provide your own cables to hook it to your TV.
That TV must be a wide-screen tv (HiDef). You then download content via another real computer somewhere via iTunes, then push that to the AppleTV.
(OK so that part should be easy).
It requires HiDef, but you don’t get to watch anything in high-def, as what iTunes delivers isn’t. Yeah, that makes sense. I get it, it looks good sitting in your entertainment center, has pretty menus and all but the actual video looks like crap.
Where do I sign up?
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