cable card man...cable card.It seems everyone wants to include a camera in this thing for video chat on the TV. Which means that the device must be located directly above or below the TV. That limits the form factor and also might create problems since the target audience for a device like this is a group that is largely using an AV receiver.
The cable companies will always require their own set top box, which they will give you for "free" but actually make quite a profit off of. That is what Apple is struggling against and also why other TV items have largely failed to really catch on. It is tough to compete against a device that is "free" and required to be connected to your TV. Google couldn't do it. TiVO was awesome, but it couldn't get folks to buy it in large numbers. Apple is selling a neat little device but partly only because of its impulse buy level $99 price. I've got three of them myself, one on each floor of my house attached to the projector or TV located on that floor.