Apple has released a 3rd generation Apple TV which now supports 1080p content. 
They have also upgraded the software, and second generation versions have already got the update. It is much easier to navigate and they have added Vimeo support as well, and Netflix now has 1080 support for streaming (though I no longer have Netflix as I am doing Amazon Streaming and using my Roku which already does 1080). And it keeps it same size and shape for $99 and comes out the same day as the new iPad, March 12th, next Friday.