I think we will find out the answer to that question this Christmas if this Apple TV Rumor is true. First they release the iPhone, at $600 it still would have sold a good number for the holiday season, but at $200 less, I suspect a lot more.

Then they dropped all the new iPods, all of those will be hot items for the holiday season, but especially the iPod Touch. Now Leopard is coming out, which will probably be paired with another hardware upgrade somewhere in the line, and then there are these rumors of Apple TV upgrades. Read on for the Apple TV upgrades.

The first rumor is that the iTunes store might finally start selling some of that 720p HD content that the Apple TV can support, not that big of a deal, but it would be nice since if you are buying an Apple TV you probably have a television with a higher res than standard definition. The second is that the Apple TV is supposedly getting an optical drive of some sort, probably DVD’s maybe Blu-Ray, I personally don’t use an optical disk more than a couple times a month, so I don’t see the big deal, but if it is a Blu-Ray drive I’d be more understanding of the importance.

The third is a combination rumor, the first part is that there will be a third tier Apple TV added, to the bottom end, the second part is that there will be larger hard drives available in the upper models. The prices would be $249, $299, and $399 with the hard drive sizes ranging respectively from either 60 or 80GB for the bottom end all the way up to 200 or 250GB hard drives for the top.

There is also sort of a rumor of some possible OS upgrades coming soon. Like I said, these are all rumors, but if more than one of them comes true the Apple TV could become another hot item for the holiday season from Apple, with love.

Rumor: Apple TV to gain HD content, optical drive [via ars technical]