At their keynote today, Apple has announced a new version of their Apple TV hardware.  The new Apple TV is much smaller than the previous version (about the size of a hockey puck) and costs $99 compared to the current model's $229 price tag.  The device will be able to stream movies available to "Watch Instantly" on Netflix.  You can also stream content from YouTube, MobileMe, and Flickr.

More controversial is Apple's decision to make the device "streaming only", so unlike the current version you can't purchase a TV show or movie and store it on Apple TV.  ABC and Fox are offering HD rentals of their shows for $0.99.  HD movies will also be available to rent starting at $3.99 a pop.  The question when it comes to the TV shows is why rent a half-hour of television when you could buy it on iTunes for a buck more (two bucks if you want to own the episode in HD)?  You'll also be able to stream movies from your computer, iPad, iPhone, and iPod Touch.  Video on Apple TV will stream at 720p.  The new device will be available to buy in four weeks.  Hit the jump to see images of the new Apple TV.