I haven't used the latest iteration of the AppleTV UI, but I did use the last version, and I found it to be pretty terrible. Any time text input was needed, it was a nightmare.
I don't know if the new UI took care of that problem, but coupled with the remote (clearly a case of aesthetics chosen of utility), I found the entire experience to be decidedly less enjoyable than any other living room interface - XBox360, PS3, or any cable set top box.
You can use your iPad / iPhone for text input -- but that isn't what this article is addressing. They moved from a text menu type selection system to a grid of applications type system.
I don't know if the new UI took care of that problem, but coupled with the remote (clearly a case of aesthetics chosen of utility), I found the entire experience to be decidedly less enjoyable than any other living room interface - XBox360, PS3, or any cable set top box.