I have one, and I think it's great. I have a Mac Mini that I use as a server so I've thrown all my media on it - along with all my DVDs etc. all ripped into the appropriate format.
It just works. My mini is on all the time anyways so I didn't bother with the bigger one and just got the 40Gb - if it's not local to the TV it'll stream anyway over wireless (802.11n here).
It's pretty much just an appliance really. I know you can hack them for other formats and the like but I've never massively felt the need to.
Music wise it's plugged into my A/V amp so it's good for that too. You just browse to what you want and kick it off.
Rentals work pretty well too, although you have to keep an eye on what you end up throwing at the iTunes Store
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