Analysts expect Apple to launch a networked television sometime within the next two years, as well as update Apple TV to include DVR features and capabilities by the end of 2009. With the television, Apple could potentially offer music, movies, games, interactive television, and more all in one package. The television would work and sync with computers and iTunes just like Apple TVs do today, and wouldn’t require attachments or a cable box. CableCARD would effectively replace the box, creating a compact system, replacing many current home entertainment devices.
A premium budget television would open Apple to yet another huge market. With a solid customer backbone on iTunes and its product line in general, Apple has only potential success with a television. An updated Apple TV would be an alternative to the Apple television. Coaxial-in and DVR functionality would allow the Apple TV to record shows, play them back, and even show a live cable stream. This would plunge Apple even further into the television market and would allow for recorded shows to be played back on the television itself, iPods, computers, iPhones, and more.
Via [AppleInsider]
I hope this does happen! I hate having a million different boxes that each does a different task. I hope this does happen so I can eliminate some of these boxes!