If you plan to game on it I’d wait or buy now and sell when the new one comes out. If you just stream then buy now.
I have the latest ATV and my son and I play Lego Brawls together. When we play for about 30-40 minutes straight it starts to overheat and has lag spikes. Not terrible but enough that if you play games I’d keep getting the latest and greatest. They are only like $100 on sale and you can move old ones to different tvs.
I use two PS5 Dual Sense controllers. They have been on sale for $49.99. Not necessarily budget but work well.