The Apple TV's connectivity has been stripped to just five ports: HDMI, optical digital audio output, USB, Ethernet, and power. There's also built-in Wi-Fi, so you won't need to drag an Ethernet cord into the living room.
The addition of Netflix streaming is also a big change for Apple TV, which was previously limited to iTunes and YouTube streaming video content. Apple TV has lagged behind its competitors with Netflix streaming capabilities, as it's widely available on Blu-ray players, game consoles, HDTVs, and set-top boxes like the Roku Digital Video Player. Even other Apple products, including both the iPad and iPhone, have been capable of streaming Netflix before the Apple TV.