Oddly enough, I happened to be watching Nightline last night and saw their piece on Google TV.
Clearly, this is not going anywhere in its current form. Just look at Sony's Google TV controller! You're expecting my family to use something like that, really?
http://www.electronista.com/articles/10/10/05/controller.appears.on.abc.nightline/
Sad because I've wanted something like this since Windows Media Center was introduced in 2002. And I've tried them all --- Windows Media Center, Apple TV, SageTV, etc. No one has come up with a good solution for this.