As rumored, Apple CEO Steve Jobs today announced an update to its one time "hobby" product, the Apple TV, and stepped into the "future" of television.

The updated Apple TV is now a device for streaming content, not storage. Now instead of purchasing movies, you can rent them from the iTunes store for $4.99. TV episodes can now be rented for 99 cents. As of today, only ABC and Fox have joined into the rental market.

The "killer ap" may be the ability to stream offerings from Netflix on the box as well. While several other devices and Blu-ray players stream Netflix, the Apple TV with rentals, Netflix and the ability to play content from a networked computer may be an attractive box for the holiday season.

The price of the Apple TV dropped from $229 to $99, making it extremely competitive with other devices with less name recognition, such as the Roku.

The iPod line was also refreshed, with the iPod Touch adding HD video, front and rear facing cameras, and "Retina Display." The Nano was completely redesigned into a small square with a touch interface instead of the click wheel.

Updates to the iOS operating system and a Game Center with multiplayer games were also announced.

In addition, iTunes went up to version 10, with a new icon. The new iTunes features Ping, a social network built around music offerings in iTunes, allowing users to follow artists, learn about concerts and recommend music to friends. Also, as part of the rentals, the iTunes Store now adds content from Rotten Tomatoes.