Apple may have just killed my want for an AppleTV with it’s new Digital AV Adapter. Announced during the iPad 2 presentation, this little dongle gives you an HDMI port for your iOS device. It seemed like it would only work on the iPad 2, but it will in fact work on other devices.
The Digital AV Adapter will, in fact, also work on the iPhone 4, fourth generation iPod touch, and the first iPad (so basically anything with an A4 chip inside). You won’t get the 1080p screen mirroring (which is likely only capable with the A5 chip), but you will be able to get 720p video output for video and slideshows. So, instead of having to use AirPlay and an AppleTV to get HD video on your TV, all you need is this dongle.
No matter what device you use, movies are restricted to 720p anyway, so that shouldn’t be such a problem. Using an iPhone 4 to watch a movie on your HDTV might not be ideal in case you get messages, but an iPad or iPod touch would be perfect. Sure, there are other reasons to want an AppleTV, but I know this was the only reason I wanted one. Having to hook it up manually is a small price to pay as far as I’m concerned.
At $39, it’s still not exactly cheap, but still less expensive than and AppleTV.