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Apple TV!
WDTV did 1080p when Apple only did 720p. Watching people fall and hurt themselves on break.com occasionally freezes, but for playing mkv videos, DVD rips (including disc images or VIDEO_TS folders) it works great. It supports Youtube and Facebook; you can plug in a USB keyboard if you need to type a lot.
My chief reservation when I first considered buying one was the lack of support for DTS-MA and Dolby TrueHD, but since I don't yet have a compatible receiver or processor, that hasn't been a real issue.
If you want to watch subscription streaming video, I don't know.
Having used both, I'd recommend Apple TV....better picture quality. Also integrates well if you have an iPad, but it's not necessary.
I haven't seen Apple TV, but I'm very happy with the picture and sound quality on my Roku with the best sources (e.g., Vudu in 1080p with 7.1 Dolby Digital +).
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