I just use it to watch streaming channels. It's a "nicer" experience than my FireTV.. the FireTV interface isn't great, and they have ads, etc.
And sure, most of the streaming services require payment.. that's no different than Roku or FireTV or alternatives.
The new Apple TV does have extra features at its higher price point (wired ethernet and matter/thread). But I've never understood why I would care how much storage is in a cloud device.
This is apple acting like a "computer" company (those windows laptops with a long lis of irrelevant stats), which they've elsewhere tried to get away from. What they've instead eliminated is any explanation of why you would care.
Ofc installing Arcade games is another obvious use-case. I find it pretty trivial to fill up a 64gb and 128gb phone so I don’t see what’s so unbelievable about filling up an Apple TV with 4K media and games.
If you're running games, you might reasonably want more storage and Ethernet.
If you're traveling some place that connectivity might be poor (e.g., you have an RV and want the family to be able to watch movies while you drive across $BORING_SCENERY_STATE), you can store more videos on it.
I’ve got three of the ‘old’ base 4K models.
And they are constantly running out of space!
They never used to. But now they do.
OS updates are to blame maybe.
I’ve deleted as much as I can, and just have my core 4 streaming app. No games.
And yet still it is offloading things like YouTube and I have to reboot to have a chance of it reinstalling.