This would be a great move for Apple, assuming all the content deals carry over through the sale.
Apple TV (and similar services) are great in concept, but lack the content to really replace the cable box for the average user. Hulu offers tons of TV content, even offering current programs the day after they air. Hulu's TV content blows away both Netflix and iTunes.
Their movie content is pretty bad, but I think it's the TV Apple would be after.
If Apple were to clean up the content (get rid of all the 2-3 minute clips and trailers that clutter up the interface) and rebrand Hulu+ as Apple TV, it could be quite successful.
With Hulu+, Netflix and iTunes, Apple TV would only be missing content from premium providers like HBO & Showtime and one major network (CBS). Personally, I can live without CBS. Find a way to get the premium channels on board and cable is no longer necessary.