I’m not quite sure what the benefit would be since the ATV isn’t designed as a “portable” device. The ATV seems to be the device that’s always fighting for storage space so that may cause it to also delete your downloads if the space was needed by another app.
I don’t think this is true unless you are potentially running out of storage. I’ve never had any small downloaded files deleted and I have 32gb models. My ATVs mostly run Plex, Infuse and Espn+ so each persons experience may be different.
I plan to grab the 128gb model today if I can find one locally, and download support for that size of storage definitely seems like a good idea! If my plex server is down or my computer that’s hosting the server is down, I can download an episode or movie for offline viewing later and not have to keep my computer or server running 24/7.
That’s a potential power/money saver (with many places electricity prices are going up) and very convenient if someone wanted to keep like 1-2 favorite movies or episodes available for offline viewing. Worth it if you ask me!