Why Roku:
I have been looking at getting a Roku for a few months now and when I saw that the Roku 2 had just been released, I figured it was time to take action. I've never owned a streaming video box like the Roku before, but I have a Wii I use to watch Netflix and my parents have an Apple TV that I've watched Netflix and other video on. I was originally planing to get an Apple TV, but decided on the Roku for a few reasons. First, the Apple TV requires a HD TV, which I don't have, whereas the Roku can handle both a regular TV and HD (nice if I upgrade :). Second, as much as I love Apple products, I wanted a device that had more streaming selection. Specifically, a device that had a Crunchyroll channel. And finally, the Roku is just the least expensive device of this kind.
Setup:
So I got my Roku yesterday and had it set up in about 10 minutes. It would have been quicker if I had been using a computer instead of an iPad. The Roku itself is TINY. A little taller than the Apple TV, but much smaller around (it fits in the palm of my hand). It comes with an A/V cable, the power cord, a remote, 2 AAA batteries (for the remote), and a very short manual (it doesn't need a long one). To set it up, you plug in the cable and cord, hook it up to the TV and power, then turn on TV and set to the correct input. Like the Apple TV, the Roku doesn't need to be turned on and off, it take so little power in its standby state that you just leave it running. Once the Roku is connected to the TV you have to set up the network connection, which is super easy. Then you have to create an account on Roku.com (this requires a computer), which is where you are required to enter a credit card for any purchases you might make on the device. Once this step is done you pick out some channels to install on your home screen, wait a minute for a software update, and then voila! your Roku is ready for use. (It took me additional 10 minutes to sign in to all of my various accounts for the different channels (3 total), two required a computer, one (Netflix) did not)
Interface:
The interface for the Roku is very simple and easy to use. The channels, channel store, and settings are all presented in a single line across the screen (settings to the very left). It is super easy to install new channels and just as easy to remove them! To remove, go to the channel store and the "Your Channels" row and select the channel you want to remove and go into it. There is a description of the channel and an option to remove. It just takes a second, and you can always reinstall it if you change your mind. Browsing the channels store is a decent experience, but it lacks a search option. It sorts the channels into categories, i.e. Most Popular, Highest Rated, Sports, etc. Each category gets a row you can scroll through. It reminds me of the Wii Netflix interface.
The Roku's interface is much simpler and easier to navigate than both the Wii and the Apple TV. Of course, if you get a ton of channels it might make it a little more difficult to find things.
Watching:
I watched a few episodes of Anime using the Crunchyroll channel (I have a Premium account, so no ads!) and the viewing experience was as good as a DVD, though naturally the scanning isn't as smooth. Scanning brings up a timeline bar which you can track as you go forward or backward, but it doesn't have any video attached to this scan. This means that you have to know exactly how far you want to go. I think this is standard for streaming media, so not a mark against the Roku. UPDATE 10/5/11: Scanning improved! Now, instead of a black screen with no indication of where you are in the video, it has a line of little pictures representing X seconds of video (5 seconds maybe?), so you can see approximately where you are, where you are going, and where you have been! Very handy!
I also tested an episode on Crackle, a free channel that has free movies and TV shows (albeit with lots of ads). Again, the video and audio were great, no glitches or problems, just lots of ads. For a 20 minute episode I saw no less then 4 ads.
I also tried the Pandora channel. I normally use Pandora on my iPad and I like the iPad interface. The Roku Pandora channel was nicely designed and easy to use and the audio was good.
Finally:
I've read reviews on the original Roku about how bad the customer service is, which is part of the reason I bought it from Amazon and not directly from Roku (HD is $10 cheaper on Roku.com, but shipping is around that same amount, so not much savings).
For $70, I think this device is an excellent deal. Admittedly I've only used it for a few hours so far, but those few hours were smooth as silk. It is easy to set up and use and if you buy from Amazon you have at least 30 days to discover problems, which is normally plenty of time for electronics.
Do I recommend it? Absolutely.
UPDATE 8/15/12:
I've had the Roku for a year now and watched over 125 hours of video on it. Have had a couple of minor issues with lines through the video (this has happened maybe 3 or 4 times), but not really bothersome and probably a problem with the video stream rather than the device. Anyway, I still love my Roku!