Guaranteed Apple has already rolled up their sleeves on the hardware for this. Sharp will be the ones to partake with the display fo' sho'!!!
The negotiations with Comcast, Verizon & all other companies alike are what is holding the Apple iTV back from production. The market still isn't there for an Apple iTV, because well, the cable co's won't allow it.
The way Apple iTV becomes a mainstay is simply due 'data speed/connectivity' issues.
No matter what, there will be an Apple iTV... it's just a matter of when. I'm hoping Apple & the large cable co's will negotiate their pricing/business model soon, and we could see an Apple iTV in the next couple years. If not, we won't see one till Fiber Optics have blanketed many markets, so the data speeds are near that 150-300meg range(viable for Apple iTV features/function set).
2014 will be the year we know which way Apple is headed for an iTV... 2013 is all about pushin' the wallet to the side for NFC & bio-metric thumb scanning.