This morning I was notified by the Apple updater that a new version of iTunes was available, version 7.1. Quoting from the Apple iTunes website:

Using iTunes 7.1, you can now enjoy your favorite iTunes movies, TV shows, music, and more from the comfort of your living room with Apple TV. iTunes 7.1 also supports a new full screen Cover Flow and improved sorting options to let you decide how iTunes should sort your favorite artists, albums, and songs.

The full-screen Cover Flow looks pretty neat, and is something I wanted to see before, to have iTunes display on a TV screen. If only they could incorporate music videos that I got in there as well…

iTunes Cover Flow Pandora's Toys Aerosmith

Update: iLounge has an in-depth article with screenshots of the changes between iTunes 7.0 and 7.1.

Update 2: Nevermind my feature request - it’s already in there! Activate Cover Flow, and watch your videos play full-screen. When the video has ended, it returns to the Cover Flow album view. Way to go, Apple! 😉