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You can rent movies on the Mac Mini also, just not HD movies I think
My setup is pretty simple. MacMini, ElGato EyeTV, NetFlix 4 per week and a TV.
With this setup, I get 4 movies at a time from Netflix, which I can return anytime I want - just as the electronic version in iTunes, but don't have to watch it within ANY amount of time once I start to watch the movie.
I get a remote just like the AppleTV, with practically the exact same menu as in AppleTV, but at the same time, have FAST search via iTunes, which the AppleTV can't do.
I have live TV with EyeTV, unlimited space via expandable HardDrives, I can watch any movie simply by downloading the required decoder.
I have internet to search any topic that I need to research. So I can pause a liveTV show and look up any info on any particulars on that show.
The list goes on and on.
It's worked incredibly well for me and the only reason I would purchase an AppleTV is for a room where I what someone to have entertainment, but don't want them going on the internet. So for kids and just fine at it's price. It would definitely not be cost effective to put a MacMini in all the rooms, but it's still a though :-)
I've read many articles in Macworld where Christopher Breen goes over every detail on how to make the mini work as an ATV plus DVR, etc...
No thanks. The ATV is ready to go with a single HDMI cable.
Do you get your audio thru your TV? If so, then yes, go with an ATV since you have a very simple setup, but if you have a "Multi-Media" setup with a stereo, etc., then using the mini is the way to go, as you run EVERYTHING thru your mini, and save yourself from having to constantly switch between inputs on your TV.
No doubt the Apple TV would be simpler to start with, but I know which way I'd go.
But, that's in my "idealized" world! Right now, I have neither. lol
As far as I can tell the MacMini can rent movies, (iTunes has the ability) I have more expandability options in regard to external storage, I can playback from Disc, I can use VLC to play any file.