I'm with the others who hope that the TV rumours are overblown and generally wrong.
46" 1080P Samsung TV will cost $1,099.99 after $100 Off, that's straight from the Costco website. Why not have a TV set that has Apple TV built in, and a built in WiFi Card for $1300? Even $1500 would be pretty freaking amazing.
I recently bought a 55" Panasonic TCP55GT30. ~$1600, plus Tax and a few random cables. I already owned a recent Apple TV (love the little things, for netflix mostly). But you can add the $120 the aTV adds to the price. The Panasonic includes its own wifi adapter. My television is connected to neither Cable nor Satellite. All my content comes from either Internet Sources or local files.
The TV has an interface (Viera Connect), I can connect to youtube, and a few other useless places. There is no reason to use it whatsoever. Well, to correct that, there would be if the TV itself supported more video codecs. The TV has a upnp client, which allows me to connect to a upnp server on my Mac Pro, and I can see the existence of many years of downloading TV shows from various internet sources.
Most of my content isn't strictly legal. I was downloading BSG before it was available in Canada for example, but I also bought the DVDs when they became available. I'm not going to bother with the process of ripping the DVDs to digital, it's usually faster just to torrent the season and leave the dvd on the shelf. I have a couple hundred gigs of videos this way.
Anyhow, yes - there's room for improvement in the interface on the TV. I don't use it though, because there's no content for it. Apple can improve the interface on the TV itself, but Apple isn't very likely to make it easier for me to play my semi-pirated video collection.
The Apple TV already makes it easy to order high quality content through the iTunes store. The other apps on the aTV add more content, one thing that is needed is an Apple TV app store, so more content providers can add their apps to the device. (I was very happy that NHL added one, but it shouldn't have taken an OS update for it, just a visit to the app store).
There is no margin in televisions. Sure Apple specializes in making margins in markets that others are racing to the bottom with, but I have a harder time seeing mass success in the $2k to $4k price range. It'd be more like their computers, on the outwards side of success.
It's dangerous to bet against Apple, but I see Apple's true path to success lying in their route with the AppleTV, not in the re-marketing of expensive, low margin displays.