. . .But isn't the problem for Apple that someday Samsung (and other tv manufacturers) make the Apps on their tv good enough to replace the AppleTV. That will mean that 1) Apple will start to lose iTunes tv revenue and 2) will take away some of the unique advantages of the iPhone over Android phones.
So it may be that Apple has to do this as a defensive ploy to protect their revenue streams...
This.
Apple has several options:
1. Sell the Apple TV software pre-installed on hardware TVs, partnering with a TV manufacturer like Samsung, Sony, LG, or whoever. Knowing Apple they'd probably negotiate with the partner such that they would brand the entire unit as an Apple product, even though Apple doesn't make the TV hardware itself, just the software. Upgrades to the software would be available via online-download.
2. Partner with a satellite content company like Dish or DirecTV to bundle Apple TV set top boxes (or "DishDVR's with Apple TV software") with their service, since satellite services are national).
3. Keep selling Apple TV set top boxes at low cost without partnering with everyone, and keep calling it a "hobby". This allows them to keep researching the ideal solution, while not allowing themselves to be compared to other TV content providers because Apple can claim they "are just hobbyists".
At the All Things Digital seminar a couple years ago, Steve Jobs talked about the challenges of Apple moving into the TV business, saying that the content providers (Cable companies) had produced a "Balkanized" landscape. That is, the cable companies had monopolies in different geographical regions. When asked by an audience member if Apple could partner with a content provider to sell Apple TVs (set top boxes or television sets) at a subsidized rate (like Apple did with the iPhone by partnering with AT&T). Jobs responded that there was no TV content provider that was nation-wide. (That's not completely true: while cable districts are indeed balkanized, DirectTV and Dish Network have nationwide coverage. Apple could potentially partner with one of them and get nationwide availability.)
Also, those companies typically offer DVR set-top boxes for small monthly fees, making it less attractive for a consumer to purchase a premium set-top box. (That is, if you're already paying for cable TV, and they offer you a DVR box for $5/month, it doesn't make much sense for you to buy a premium DVR box like Tivo for $100+ because it will be 20+ months before you recoup your costs, and by then the technology you bought may be obsolete anyway.)
So, if Apple wants to play in the TV content/hardware business, they indeed need to come up with some way to bundle their product ("content":the iTunes Store, "hardware": Apple TV set top box functionality including AirPlay and Home Sharing) in a way that it will make sense for consumers to buy it.
Personally, I have a 37 inch 1080p Sharp TV in my living room that is ~6 years old. I also have a 27 inch Sharp CRT in my bedroom, which is ~12 years old. I have Apple TV's hooked up to both of them. I do enjoy not having the Apple TV functionality built into the TV set, but on the other hand if Apple does put out an integrated set in the next couple years, I may grab one for my living room, move my 37 inch into the bedroom, and get rid of the 27 inch CRT.