I used to work for a company (about three years ago) that created a few "home appliances" that were computer based, called iCeBox (notice the "i"?). There were two versions, a countertop version that looked EXACTLY like a color classic (yep, brought mine in one day for a side by side comparison), and a flat panel LCD version you could mount under your upper cabinets. They did TV, web browsing (using Windows CE as their OS), had a DVD player, and the cool thing (well, if you were in Europe, since most people in America don't use one machine that washes and dries clothes) was it could talk to "smart" appliances, like the fridge, washer/dryer unit, dishwasher and oven, all over the house electrical system. And it would display the status of each device graphically, including happy and sad faces. Also, it would work from a wireless keyboard you could throw in you dishwasher, should you spill anything on it, as well from a cell phone. So, essentially, you could stick dinner in oven before you left for the day, programmed it to start dinner so it would be ready when you got home at, say, 6:30. But, you get stuck in traffic. Well, with this you could call home to your iCeBox, tell it you'll be home later, and have it rest the dinner time to 7:00 or later.
Yes, these actually went for sale, and you could get them from high-end catalogs. The countertop version was around $1,00 or so, while the cabinet mount version went for around $2500. As a a matter of fact, I saw them being touted on a show on HGTV the other day.
Oh, and this company was the first ones to design and build a tablet PC, 4 years ago roughly. And, everything they did was built around an ARM or StrongARM processor.
You can see the icebox here:
http://www.beyondconnectedhome.com/products/icebox/index.html
As cool as it is, it runs on CE (blech), and would tend to freeze up and go to the blue screen of death every so often. My guess is Apple saw this, and figured there has to be some way to make it truly functional, plus get it to tie in with Rendezvous.