Looks like Apple (NASDAQ:AAPL) still considers Apple TV a hobby.

The 3.0 version of the Apple TV software gets a few minimal upgrades, such as access to Web radio and iTunes Extras and iTunes LP, once known to us Mac addicts as "Cocktail."

This is what you call an upgrade, Apple? Not good, and not worthy of being called a competitor to TiVo (NASDAQ:TIVO) or the varying video-on-demand services offered by Amazon.com (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX).

But it's actually worse than that. We're past the point that Apple should get a pass on Apple TV. This isn't cute anymore. It isn't even a hobby. It's a waste of money dressed as a research and development project, but without much development. Apple can do better.

Check that; Apple should do better. Resources aren't an issue. This is a company with $34 billion in cash and securities available to invest, but which largely sits in the equivalent of a passbook savings account.

Why, Apple? You're facing significant competition in every market, including video-on-demand. You know the names; Netflix and Amazon, sure, but also Comcast (NASDAQ:CMCSA), Dish Network (NASDAQ:DISH), DirecTV (NYSE:DTV), and of course, TiVo. Every one of them is playing hardball as you indulge your hobby.

Hobbies are for kids, not Hollywood. Maybe, like NBC's ill-fated show Trauma, it's time Apple TV was canceled. What do you think? Please take a moment to vote in our poll and then add your comments in the space below.

Amazon, Apple, and Netflix are Motley Fool Stock Advisor selections. Try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers is a member of the market-beating Rule Breakers stock-picking team. He had stock and options positions in Apple at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. The Motley Fool is also on Twitter as @TheMotleyFool. The Fool's disclosure policy just snuck up on you. Boo!