Television is so rudimentary in the scheme of things.
The future of television, as I see it, is through subscriptions and pay-per-view.
Say iTunes and AppleTV is the service provider.
Subscriptions would consist as such (payed on a monthly basis):
Individual packages for Fox, HBO, Showtime, CBS, ESPN, etc. etc.
With these packages, you'll gain access to old and new episodes of shows, including live streaming of airing episodes. Same as with Hulu, it'll include short advertisements. You can stream these at any time, but if you want to download them, you'll need to pay iTunes prices.
Sport packages are also a must. Having the ability to buy the NFL sunday ticket, have live streaming via iTunes, and downloading full games would be... just awesome.
And the most revolutionary... News. Just look at CNN, where basically, they repeat the same clips several times throughout the day. Why not have individual streamed clips (and live streams for, say presidential speeches) that highlight certain events, and compilation clips for the day's news. This way, if you hear something specific that you want to watch, you don't have to turn on the television and wait for them to discuss it. You just choose the clip that resonates with your curiosity.
I don't know... that's what I think television should be.