Apple's plans for the Apple TV, from Tim Bajarin

Also, Hulu debuted on the iPad and migrated over to Apple TV. It is only a matter of time before Amazon's streaming service shows up on Apple TV as well. Apple knows content is king and that it helps it sell hardware.

As I stated earlier, Apple could create a standalone TV, but I would be highly surprised if it did. Instead, I believe Jobs and his team saw the long-term evolution of what the external Apple TV could become. This box, tied to advanced UIs and innovative services with content that is at the center of Apple's vision, can revolutionize the interactive TV experience.