
Apple is going to release a wireless, fully Internet-surfing-ready HDTV home theatre system with iTunes and video on demand built-in, and an iPod dock. Maybe it'll have a Wiimote-like controller? Or maybe you'll be able to download software that will let your iPhone and iPod touch act as a touchscreen remote.
It'll still accept input from everything else, of course - just switch to another channel to watch your cable or play with your PS3. But their set-top box is going to be the TV itself, and everybody else's box will connect to it. Video content from the AppleTV or from the Internet will download seamlessly to your docked iPod. And it'll have decent speakers on it so you can play your music too.
They're going to take huge advantage of the confusion that's going to occur when analog signals stop broadcasting next year. They release version 1.0 of AppleTV now, then in 2/09 they release version 2.0 for the next wave of consumers - and the cost for 1.0 will go down enough so that latecomers to the digital TV party will be able to buy something when they want to get rid of their old TV. Every TV manufacturer in the country will shit skinny next week.
(This is why Google announced their Google/YouTube TV thing, by the by)