The Apple TV needs to be "Always On" because it's getting its TV content from the Internet instead of a DVD & not because of deficiency in its RAM or local storage. The same would go for a DVD-less 360. If you don't include a DVD drive, then how do you get your games? Can't buy them on USB. Now if the combo of Xbox Mini + Durango allows you to use 360 disks, then that would be cool.
Tommy McClain
The Apple tv can only stream because it lacks any decent amount of flash. All other apple devices with a decent amount of flash can make use of the same content by streaming playback while downloading in the background. In fact, I can stream from an iPad to an apple tv while the content is downloading to the iPad.
Apple TV is pretty limited without an/a online/wifi connection so comparing 361 with ATV while saying its just as limited without a connection made me consider the potential lack of a HDD or a decent amount of flash.
Doesn't mean that the 361 is only functional when online even though it's fully capable of operating offline as its only disk less. We will ultimately discover if and why 361 only operates with an online connection.