I have the apple TV 2 720p version and its great. Jailbreaking the Apple TV 2 can unlock you a great library of movies/tv shows *Hint*Hint*
And yes the Apple TV does have Netflix as well as Hulu. The new Apple TV that just came out a while ago can go as high as 1080p as long as your TV can go that high.
EDIT : Look at this link, i just read over it and there is some pretty good comparisons. http://www.electronichouse.com/artic...media_showdown