What I am saying is that the Apple TV should not be a box with storage or a display processor. All it should be is a way for me to communicate with my computer and display my media at the the proper resolution for my particular TV. No need to sync, no need for Blu-ray, or DVD. That can be at the computer. I can get rid of all the junk that is at the TV stand, and just use the TV for what is should be...a monitor.
HP tried that several times and failed. It was called the MediaSmart TV and had built-in Windows Media Center Extender support (network DVR, etc) along with HP's own built-in software for viewing content from UPNP devices and the web.
Sony is currently trying this with some of their Bravia HDTVs that have the XMB interface and Internet Video Link.
I'm sure other HDTV manufacturers are doing similar things.
The problem with these devices is that they've traditionally been more expensive than their non-network enabled counterparts and the user interfaces are horrible.
If you think Apple is going to partner with Samsung, Sony, Panasonic, Vizio, etc to build Front Row/Apple TV-like capabilities into the actual set, you're crazy.
It's not going to happen. Their not a platform company and it's not in their DNA. All of a sudden Apple would become responsible for trying to manage their software across multiple HDTV platforms including software updates (for DRM changes, etc).
Microsoft has tried for years to pull this off with Windows Media Center, a platform that's been available to these manufacturers for years, and haven't been able to do it.
The best you can hope for is for Apple to extend the "AirPort Speakers" functionality to support video on the Apple TV. Maybe we'll get an updated AirPort Express that supports video-out. There were rumors to that effect several years ago.
https://www.macrumors.com/2005/10/04/airport-express-with-video/