I think this is way off the mark and misses critical aspects regarding the hardware itself and its commoditization. Like I wrote ages ago, what they need to do is make it run a lot cooler (i.e., decrease its similarity to a frying pan), add a real power switch (i.e., make it greener) and stop being media format bigots. My new TV can play just about anything from H.264 to .mkv
(including DivX HD), and there’s really no reason (other than wanting to maintain absolute control) to keep the device as dumb and limited as it currently is - unless Apple likes its “toys” flawed.