1. The app is terrible. It takes forever to connect and the remote is harder to use than the real remote (swipe up to simulate pressing up, ugh). Typing on the phone is also frustrating when the realtime search results show up on the TV, it should all just be on the phone!
2. The remote app shows how Apple completely misses the point: the remote app is designed to be secondary to the TV. You're still looking at the TV while fiddling with the phone. The experience should be completely on your phone. There's no need for a movie app on the AppleTV, just go to the iTunes Store on your iPad, hit rent, and then have it notice there's an Apple TV on the network and ask to play it there. That way I'm quickly swiping through movies and looking at content through a gesture mechanism people actually like (touch) vs one people hate (TV).