I think I have a better chance of winning the lottery than Apple fulfilling my wish list, but OK:
1. New hardware including a faster processor, more RAM, SATA interface and 1080p playback at up to at least 40 Mbps.
2. Adopt either 10.6 or iPhone OS as a base including support for QTKit HTTP live streaming, but keep all current software features.
3. Add an App Store (El Gato EyeTV, etc).
4. Add Dashboard including full support for current OS X widgets (Radar, Weather, Clocks, Calendar and Stocks).
5. Add Safari for basic web browsing.
6. Add Bluetooth and support the Apple Bluetooth Keyboard and Mouse for browsing.
7. Support attached storage off an AirPort Base Station or Time Capsule including full syncing and streaming back and forth.
8. More iPhone, iPad and iPhone touch integration.
9. TV and movie subscription service (streaming or download).
10. Better MobileMe integration.
11. It needs a WOW factor to promote its place in the Apple lifestyle. Something futuristic and "flashy” like the name of the caller on my iPhone popping up on the screen, calendar app showing the entire family’s calendar, iPad-like origami screen saver, create your own iTunes-like Extras for your iMovie project, etc. Apple needs to bring the “digital hub” back.
12. “Play to” Apple TV video from iTunes like you can do on Windows 7 and the 360; support screen sharing your Mac’s desktop with the Apple TV including sound like Intel’s upcoming WiDi technology