On September 1, Apple effectively killed off the first generation Apple TV models (40GB / 160GB) with the next generation storage-less A4-based Apple TV.  Many first generation owners, myself included, have come to the realization that the future for the Apple TV is bleak, but there are several options available.

1. eBay - The average selling price of the 40GB MA711LL Apple TV is currently in the range of $80 to $110, more than enough to cover most (if not all) of the cost of upgrading to the new Apple TV.  Similarly, the 160GB edition MB189LL/A is selling for $110 to $120; this is not exactly the price jump I was hoping for when factoring in 4 times the storage of the 40GB unit.  At the end of the day the fact remains, you can sell your current Apple TV to cover the cost of the new model if you act now.
2. aTV Flash – If you never took advantage of the Apple TV hardware and want to explore your options for wider format support (AVI, MP4, MOV, WMV, DVD Video_TS), add external storage via USB port, or surf the unfiltered Internet, it’s time to seriously consider aTV Flash.  The software is not free, $49.95 for 1 year of updates, but it is compatible with the latest 3.0.2 Apple TV software and it is regularly updated with your choice of PC or Mac downloads.  The real downside with aTV Flash is that it is an additional $10 per year for software updates or $79.95 for lifetime.  When you consider the cost of a new Apple TV is $99, you need to evaluate whether or not you’ll find value in the additional cost of aTV Flash.
3. Boxee – Much like aTV Flash, Boxee opens a whole new world of media to the Apple TV.  Not only does it deliver a wide variety of format support, it also brings countless web-based streaming services to your television.  Thanks to an open developer community fueling innovation, odds are you can find an app for Boxee that will stream any media or website you throw at it.  If you still need a reason to install Boxee on your Apple TV just look at the price tag, it’s free.

Those are just three options for current generation Apple TV owners.  Before you go on your way and decide which option is best for you please keep in mind that while streaming of Netflix and Hulu is possible, the quality and performance do not deliver an adequate experience.  For Boxee in particular, recent changes to Hulu have effectively blocked access to Hulu content just like the website did for PS3 owners.  As a result, even with the D-Link Boxee box is released later this year, users will not be able to stream Hulu unless Hulu and Boxee agree to terms- terms which most likely will require a Hulu Plus subscription.