The best review I've read of the Apple TV at Clark's Tech Blog. I agree with almost every point Clark makes. That said, it's still better than my cable box.
I recently built a home theater and the only source I have needed to connect is the AppleTV.
As Clark says, it should only be used with the remote app. That should be the first thing the setup assistant does for a new user. Make them install the app and then auto-pair on the network.