I like the new LP format. It consists of a new file type (.itlp) that contains everything but the songs and some of the videos. I bought the Norah Jones. In iTunes, the album appears as a number of items. The first is the iTunes LP file, running at 175Mb. This contains the interface and it links to the songs and two of the videos. The rest are the songs of the album, plus, in this case, two videos. You can play the songs and videos in iTunes, independent of the LP interface. These are what are synced to your iPod or Apple TV. To view it in LP mode, you double-click the LP item.
The LP interface is much like a DVD, with clickable links. All the text is large, like it is with a DVD, intended to be read from across a room on a large display. It seems a no-brainer for Apple TV to support this in LP mode, but as of last night, there was no software update. This would also apply to movies with extras. It’s a virtual DVD. I’m hoping we see this on Apple TV soon.