- iTunes
What can run iTunes smoothly besides the dodeca-core Mac Pro? The beast is sluggish and slow, and it tries to do too much for too many devices. If iTunes were optional and drag-and-drop were available, man, think of all the new possible sales. iPhone as portable hard drive, iPod touch as portable hard drive, iPod nano as portable hard drive, the possibilities are endless! - Video codecs
Seriously, Apple makes some of the most advanced consumer electronics, but the iPhone can't/won't play an .avi file. Think of all the consumers who own .avi files but won't use the iPhone because they'd have to convert all 100GB+ of video to some Apple-approved format that's totally the same thing. Is this the wonderful user experience that Steve Jobs really wants for his customers? Even if they all turned to iSheep, there's a huge part of the market that won't get an Apple TV just because it's too much trouble to convert all those videos. Meanwhile, I'll stick to my Xbox 360 that CAN play my videos. Hmmmm, decisions, decisions... - Prices
This is a big one. So big, in fact, that it comes last on my list. Sure, Apple is a premium brand, but premium can be synonymous with "big waste of money." I shop for value, getting the most for my money. If something is well-built and will last a long time, I'll pay a bit extra for the higher quality stuff, but that quality-vs-price curve breaks down very low for some Apple products. For instance, MacBooks are grossly outspecced by PC notebooks, though admittedly offering a better overall experience, but there's only so much a smart spender will shell out for that difference. When you're getting the same specs at almost 60% the price, it's a really tough argument. I only went with the MBP 13 because I have a student discount, free iPod touch and printer. I can't imagine what it's like for the rest of the market paying regular price for all these things. Yeah. Drop the prices or hold sale events with better discounts for everyone.
Pretty foolproof, non? Of course, Apple will continue in its merry own way, disregarding my words of wisdom to its own benefit. I mean, if you really want to capture the market with a deathgrip, you could loosen the "rules" for a bit of cash. I mean, if the Apple TV is going to have more success, it really needs to be able to stream whatever people are already packing and not just new purchases, much like how iTunes can play music not originally bought in the iTunes Music Store. I'm just saying...

