I know I'm going come off as an Apple apologist (who, me?) but the 4th gen Apple TV remote struck me as awful considering how nice the previous Apple TV remote was. After using it for two years, I'm used to it but it still has a steep learning curve for most users. Now the the Apple TV remote app on the iPhone/iPad can be launched from the Control Center I find that's the better way to control the 4th Gen Apple TV, especially when it comes time for text input.
At least Apple took one criticism and changed the new remote to place the raised white ring round the Menu button. This allows you to know which way the remote is oriented in your hand, lights on or off. This would have not been an issue with the original 4th Gen remote had they stuck with the Aluminum body of the previous remotes, using the Gorilla Glass for the touch-sensitive screen area. Every other touch-sensitive Apple device has shiny glass for the touch screen, but not the 4th & 5th Gen Apple TV remotes. That's just inconsistent.
I see, gonna return the Apple TV because it’s frustrating navigating the touchpad on the directv menu and half the times it does the wrong thing, otherwise the box is amazing.
The trick to making the Apple TV Remote work for me was to reduce the touchscreen sensitivity (Settings :: Remote and Devices :: Touch Screen Tracking : Slow). Doing that, the swiping gestures to move around the screen works for me (once I'm holding the remote the right way) and even text input is "acceptable" once you learn a few tricks like holding the pad down (3D touch?) to bring up alternate characters for the character you're on.
One other thing you can do is if you have a Bluetooth keyboard, you could try pairing it to your Apple TV. I did that for mine but don't use it much. Before the new iOS it made entering the passwords for the different accounts much easier, but the TV App now "remembers" most of the account credentials for you.
It's not the most frustrating remote I own, but it's certainly far from the best!