think different
I am inclined to believe that Apple has not given up on it's quest to continue with the innovation and revolutionizing the entertainment industry.
1) - People saying "the price is too high, this is a BS rumor". Well, you know... the price is just a rumor as well. Jeez. Using one rumor to discount another?
2) - I agree that it does not make sense for apple to add DVR to something like this unless they intend to stop selling TV shows on iTunes. Hey, who knows?
3) - It's a rumor, and very far fetched at that. I like the theory of how great it is to have one "red herring" rumor like this, which means that some of the others are more likely to be true
However!!-
BOY is this device an interesting concept! Think about what it could do for the industry. Look at the effect the iPod could be theorized as having on the music industry. This seems to be essentially a big'ol "TV iPod thingy" (um... but a little less portable). Making it a "50" imac" seems doubtful.
You must be blind if you don't think it's glaringly apparent that Apple realizes the value of establishing themselves as far more than just a computer company.
Before this iTV (?) rumor I was wondering "so where's the innovation? Where's the Vision? Where's "think different" this year?"
"we can do it, we have the technology"
Apple has the resources to implement something like this. Take a look at their technology and current software + the money from all the iPods. Sure, it's a risk. But I think that Apple of all companies has the balls and brains to be able to A) - realize if it was even remotely practical, and B) shape it into a successful product ("solution" is better way to describe it).
Another bit of fuel to the fire is this: look around at everyone else (ie. the competition). What are they doing? Mind you I am no expert, but they seem to be tripping over eachother in the race to release an online music download (video?) service to compete with iTunes. Sure theres talk of "home media centers" all over the place as well.
I find this a fun thought: So, we have this battle for 2nd fiddle to iTunes, and all these rumors about Intel. Apple, not content to revolutionize the industry by developing displays for iPod shuffles or iTunes phones

, could have been masterminding this new paradigm shift for years now. All the pieces are (or may soon be) in place to implement this concept. I always had this "weird more-than-meets-the-eye feeling" with the iTunes music store - especially when FrontRow and the iTunes video content was announced.
1) - FrontRow is cool... but ain't it a little much for a computer?
2) - iPod video is cool, but Apple has to realize that "video on iPod" is not where it's at.
== Both of these, as well as the iTunes video service just *scream* "field trials".
That's all I have. Sorry, too much coffee today

Still rumors, but, hey, isn't that why we're here?
Cheers,
-TC