New hardware will be released 1st 1/4 2010- similar looking to existing model- 1 or 2tb option, same features plus App store- with BBC iplayer app etc... and movies will go from 720p to 1080p. UK pricing will be £249 for 1tb and £349 for the 2tb option.
SmurfUK, I hope your prediction pans out. I'll be first in line for that one.
fpnc, my arguments generally revolve around how Apple could sell a lot more

TV units (by giving the market more of what it wants rather than trying to make the market want it as Apple wants to give it to them). You're coming back with "they can't do that because it's too hard", "they won't do that because it's not compatible with the iTunes vision", etc. type responses. How do they entrench this box in the mass market's living room with such logic?

TV is more like a little (albeit underpowered) Mac Mini. Out of the box- with hacks- it is capable of being extended by third parties with a few features the market wants (and is willing to pay more for). For example, some BUYERS want more storage on the box than 160gb. There's a hack for that, and some people pay upwards of $50 more for that hack. In turn, they get a variation of the

TV that is more to their personal wants. Would it be too hard for Apple to build in that "hack" (that is normalize the USB port that is already there, and add a bit of code that will make a big hard drive attached to that USB port become much greater local storage for it)? Definitely not. It's obvious that even the current incarnation could have some coveted features to make it more appealing. Apple merely chooses NOT to incorporate such features.
Yes, there are not DVR dongles hooked to iPhones giving us full-fledged DVRs on that portable device. But there are Elgato USB sticks hooked to Macs that give a pretty nice incarnation of DVR functionality for that computer. It is EASY to imagine an Elgato linked to the USB port of an

TV bringing that level of DVR functionality to the

TV (except that the current gen lacks the hardware punch to be able to handle it, though a next-gen- well past due- could easily step up the processing punch without having to jack up the price). Would an Elgato option for the

TV be enough for the "I won't buy one until is has DVR options" crowd? Maybe. But at least there would be
something to move that crowd toward buying one.
It is NOT too hard for Apple to normalize USB expansion ports in a next-gen (if the hackers can do it, I'm sure Apple is smart enough to be able to do it too) and leave the rest to third parties. They simply choose to tightly close this piece of their product portfolio for some reason, ignoring the calls of BUYERS saying they would buy if only it had one or more features (or feature options) that cater to individual wants. I easily grasp that, and easily see that they would sell more units if they delivered on that. I also see that they don't sell those units by choosing to stick with things "as is".
In the meantime, the mass market is buying electronics to hook to their new HDTV's this Christmas. If they want to spend about the price of an

TV on a new toy, what's it going to be:
1. A BD-player, perhaps with some extensions to link to the Netflix library, that can put 1080p quality on their 1080p set
2. An HD TIVO/DVR so that they can easily capture content they are
already paying for, probably in 1080i or full 720p
3. An

TV that will max out at a very limited incarnation of 720p, and involve them having to pay again if they want to somewhat replicate the programming availability of that DVR. What gets that money this year?
If Apple doesn't own the living room before someone else takes it, the guy with a dedicated BD player and TIVO/DVR will not be very motivated to go out an add yet another box- an

TV- so that they can enjoy lower resolution programming than their BD player offers, and so that they can re-buy shows already flowing to their DVR at added cost, because that's the way Apple chooses to make such content available to them. The vision doesn't come to pass very quickly if this is how it plays out. A next-gen

TV needs to have the features (or feature add-on options) to be so compelling it is the first choice of the next bit of AV equipment the mass market wants to buy. If it can be seen as potentially one box to rule them all, then it is a way for nearly every individual to meet their respective needs by buying it over a stand alone BD player or DVR. If the mass market sees it as a third, fourth or fifth option, it may never entrench, which means that the discless/DVR vision would likely be fulfilled by some company not named Apple for those people. If those people are the mass market- not us dedicated Apple lovers- that's an awful lot of business Apple is choosing NOT to take.
What is the most coveted smart phone on the mass market's wish list? That's easy. Now what is the most coveted set-top box that the mass market wants to hook to their HDTV? Not quite as obvious. Yet is could- and should- be... if only Apple would choose to make it so.