As part of his talk at at the D: All Things Digital conference yesterday, Apple's Steve Jobs revealed that the company will partner with YouTube to bring the sites videos to Apple TV. 

Starting next month, Apple TV will [add a "YouTube" option][2] in the device's main menu allowing users to browse and watch the thousands of hours of videos on the site.

Although hackers had already figured out [a way to browse YouTube via the Apple TV][1], the official version should be welcome news to those who haven't the skills or nerve to go tinkering with the core components of their Apple TVs.

Also as part of the announcement, Jobs unveiled a new Apple TV model sporting a 160 gigabyte hard drive, which will retail for $400. The existing 80 gig model sells for $300.

Sadly the Apple TV still lacks a DVD player, which is one of the central critiques in a recent and somewhat [scathing review from Fortune][3]. 

While the Fortune piece has some valid points, it seems to miss the larger picture. Even the iPod wasn't a best seller out of the gate. It was woefully small, quite expensive and didn't really catch on until Apple addressed the initial problems. 





[1]: http://blog.wired.com/monkeybites/2007/05/watch_youtube_o.html "Watch YouTube On AppleTV"
[2]: http://www.apple.com/pr/library/2007/05/30appletv.html "YouTube Coming to Apple TV"
[3]: http://money.cnn.com/magazines/fortune/fortune_archive/2007/06/11/100060835/?postversion=2007053007 "The trouble with Apple TV"