MacRumors is reporting that evidence of a next generation AppleTV has been found in the bowls of iOS 5. This isn't surprising, products of the "future" have been found in Apple mobile operating system before; but the lead times can be incrediblly long (further evidence Apple plans well in advance). What could a new AppleTV have in store? 1080p is the most likely candidate. Since the iPhone 4S will produce 1080p video and the A5 can easily handle 1080p video - it seems a no brainer that Apple will eventually start streaming 1080p movies. Personally, the quality I get today with 720p is pretty darn good on my 55" 1080p LED TV. I think the AppleTV would have to do more than just 1080p to get me to replace the two we currently have in our home. I'm sure Apple has something else under their sleeve, but I will say that for a hobby the AppleTV is constantly being leveraged.

MacRumors Article: Next Generation AppleTV References Found in iOS 5, But When?