I envision a $99 iTV because we've seen that price over and over for months, but no other rumored pricing. In the past, it seems rumored Apple products with low pricing have subsequent leaks of higher pricing to get price expectations more toward what will actually be THE price. That hasn't happened with this iTV rumor, so I'm assuming that $99 might really be THE price, or near to it.
A subsidy would be a whole other can of worms. Who is subsidizing it? Are we talking some kind of 3G contract? If so, why? Are we talking some kind of cable-TV-like subscription. If so, that would probably be Apple taking on the role of a next-gen Comcast. Would that imply, that Apple is going to sell it for $99 with some kind of 12 or 24-month subscription at $XX per month?
Then, we would have to see the $XX as well as what's in the subscription to decide if $99 is bargain, good, not so good, or rip off. What's the penalty for quitting the service early? Etc. It's a bit harder for me to imagine Apple in that kind of role, unless they've observed how lucrative the iPhone subscriptions have been for AT&T and decided they want to get in on that side of the transaction in a big(ger) way.