I'm interested to see how they are going to pursue this.
First of all, it will be hard for me to see how they are going to release an entirely new TV product, rather than an add-on box. Unless it's something like a 4K OLED set with built-in HD iSight for $999, everyone is already invested in big, thin televisions. Maybe if they had a built-in
4K Redray streamer or something, I dunno.
Second of all, the AppleTV is kind of a terrible product right now. For better or for worse, you're stuck with it as it is. It's like the original iPhone, with no third-party apps. I think Roku has the right idea - channels you can add at will. So maybe they'll do a full idea port of iOS and start letting you have apps stuff on your TV, which would be cool. But the Roku already does that, starting at $49, so I'm curious to see what Apple would offer over that. Maybe some sort of Apple home automation tie-in?
They'll really have to examine their distribution model, too. I really like Netflix because it's like channel flipping...I don't have to pay 99 cents or two bucks just to watch a TV show, I can watch anything they have for $8 a month. I've heard they may be going the Spotify/MOG/Raphsody/Napster route with streaming audio as well, so that would be interesting to see. They're really close to clobbering Sonos too...