The next-generation Apple TV will be capped at 720p for video output and will be capable of running apps, according to a new report. Without citing sources, Engadget reports that the new device won’t be enabled to handle 1080i or 1080p video, supposedly because the A4 chip can’t handle higher-resolution content — although the report states there is much internal debate going on at Apple concerning this issue. In addition, Engadget…
