I also use the Apple TV Generation 2 (http://www.apple.com/appletv/#tv-overview) and it has all the advantages (no cables, use from your lap not X centimetres from the TV, pass iPad between family/friends/guests) listed as well as access to your home network (iTunes) as well as the Internet (YouTube) and iTunes store -- in our case we use the Beo4 for controlling the media selection but revert to the iPad for functions like searching since using the Beo4 to "mouse" around the alphabet is a pain (see image below).
moxxey: Like the person said above, you and also use your Apple TV to wirelessly find your iTunes library and stream audio from this to your Apple TV (or via the iPad). Only works with the iPad 2 though.
The only thing that I believe you need the iPad2 for is mirroring the display to the ATV2 ... BUT mirroring is not the same as playing content from the iPad, since I play audio and video content from my iPad1 to the ATV2 using these Apps either builtin to IOS5 or downloaded from iTunes:
- YouTube (builtin)
- Videos (builtin, requires content to be on the iPad)
- Photos (builtin, requires content to be on the iPad)
- Music (builtin, requires content to be on the iPad, but can use Home Sharing to access music)
- Remote (accesses your iTunes Home Sharing, http://www.apple.com/itunes/remote/)
- PLEX (accesses your PLEX media server library)
- EyeTV (accesses your EyeTV recordings)
- VLC (less useful, requires the content to be stored on the iPad, and I think it has been discontinued)
- BBC iPlayer, ABC iView (and I am sure there are many more)
- BeoPlayer (and many alternatives to this, e.g. AccuRadio)
- Last.FM
Mirroring is useful if you want to play games on the iPad and have that appear on the big TV without using a cable -- for this you need iPad2.
First B&O (1976) was a Beogram 1500 ... latest (2011) change has been to couple the BL11 with the BL6Ks *sounds superb*