The were a lot of rumors around before the launch of the new Apple TV, the most interesting ones from Engadget that claimed the Apple TV would be fully compatible with iOS apps. But Steve Jobs claimed it had no local storage, how would that work?
Looking at the tech specs page of the Apple TV site I can't find any information about storage though. There must be some storage to fascilitate buffering of video but it could work just fine with only RAM.
What the future of the Apple TV will be no one knows. But if it doesn't have local storage it won't ever handle apps. We'll have to wait for the next generation.
Now begins to long wait for the post launch tear down that will tell us if it has local storage or not.