Apple announced today the the free Apple TV software update enabling movie rentals is not quite finished and will now be available in another week or two.

My friend eagerly waited on Macworld 2008 before buying an Apple TV to make sure they wouldn’t come up a newer model, which they didn’t. Today we decided to go to the local Apple store to pick up a 160 GB Apple TV and an HDMI cable and they where sold out of both. Luckily I’m in the area with five apple stores within 45 mins, so I gave them all a call and they where out of stock too!

We weren’t in any rush or anything because the free update isn’t available yet, so we ordered one online. We just received an email from apple that the order had been back ordered and expect the Apple TV to be shipped in February.

It seems “Apple TV Take 2″ might be a bigger hit than some may think.

With all the great things in Macworld, there are a few things that might be overlooked.

The Good

Time Capsule - A great way to have a wireless backup for laptops without hooking a external drive to another machine, but also a great wireless N router for those who didn’t get one yet.

The Semi Bad

Macbook Air - I just preordered one for my wife for $3,098. As much as I love the design, there are a few really bad things such as only one USB port. My wife and I both hate trackpads and use mice so that leaves zero USB ports open.

The Macbook also doesn’t have a superdrive built in, which isn’t a huge problem because we can rent movie now in iTunes and watch them on the plane. We can also install software by sharing superdrives on other macs in the house over wifi.

According to Apple, the Macbook Air will have 5 hours of battery life, which usually means 4. 4 Hours is still amazing, but I have a feeling thats the SSD version only (less moving parts in the machine). I ordered a SSD anyways for speed, but it’s something to think about.

The Semi Ugly

iTV - I’m semi glad I didn’t have to buy another iTV, but I wish the specs had 1080i or 1080p output. Right now the iTV can output a maximum of 720p which is a low grade HD format.

iTunes Rentals - About freakin time, now I can dust off my iTV. This is much better than having to buy a movie, but in all honesty this will be no blockbuster killer. We have to wait 30 days after blockbuster gets them to rent..

When Netflix and LG start there streaming devices for TVs, this will hurt iTunes rentals badly. As of right now, iTunes will be one of the better online video rental solutions, but not for long.

There also isn’t any incentive to watch an iTunes movies Vs a cable box On-Demand movie, except if you own a Tivo series 3. Yes Tivo has Amazon Unbox, but the quality is horrible especially on my 70 inch screen!

iTV / iTV Software update Information

• Update Available in 2 weeks, no new iTV!
• Dropped Prices $70 from $299 to $229
• No computer required, you can do everything straight from the box! Music, Video,Rentals etc..
• Syncs with iTunes as before except you can reverse sync.
• Dolby 5.1
• Hooks into .Mac and Flickr
• All the same older stuff too.

iTunes Rentals

• Touchstone, Miramax, MGM, Lions Gate, Newline, Fox, Warner Brothers, Disney, Paramount, Universal and Sony
• Available 30 days after DVD release BOOOOOOOOOOO, Definitely not a Blockbuster killer.
• Price
  • $2.99 (Standard Def) Older Rentals
  • $3.99 (Standard Def) Newer Rentals
  • $4.99 (High Def)
• 24 Hours to keep when started watching, 30 days to hold if you never watched
• Starting 2 weeks in US, later in other countries