Today's kids don't care about classics. Believe it or not, a lot of people play Angry Birds and Temple Run. I don't like either of those games, but there are a lot of great iOS games and other games that could potentially run on an Apple TV.
There's defintitely a market for cheap, disposable iOS games, but such is true with mediums like film and television, there will always be an audience for immersive experiences in video games.
iOS apps may outsell console games, but that's almost exclusively due to the price point. If Temple Run and Angry Birds were $50 for retail, they wouldn't ever be touched by casual gamers. On the other hand, with $50 price tags:
-New Super Mario Bros. Wii sold 27 million units worldwide
-Super Mario Galaxy sold 10 million units
-Super Mario Galaxy 2 sold 7 million units
-Zelda: The Twilight Princess sold 7 million units, and that game had a release on both the Wii and the Gamecube
-Mario Kart Wii sold 34 million units worldwide
-Smash Bros. sold 11.5 million units
There is definitely an audience out there for complete, immersive games. The blanket statement "kids today just don't care about..." doesn't hold water for 2 reason:
1) They do. The sales prove it.
2) Kids aren't the only gamers. Teenagers and older are more active gamers than kids are.
Also, the NGC versions of all those were the best except for Metroid!
The GameCube was a dud not because of the quality of games and gameplay (very great first party games), but because it had limited third party support, was a generation behind in terms of technology (it was the first Nintendo console that opted to use disks), and it simply didn't sell very well.
Well I've never played OoT, so I don't know about Zelda.
Get on that. It's easily one of the five best games ever.
There's also emulators. Playing NES and N64 games on a hacked ATV would be awesome. I have a real N64, but I DESPISE the controllers. GoldenEye would be 4X more enjoyable on a system with good controllers and no lag.
Except a hacked Apple TV is far from standard, and I don't particularly enjoy playing GTA and FPS's on an iPad, which is how I believe Apple would "fix" TVs and gaming.