I'm far from being a total Apple fanboy, but that is the funniest thing I've read all week. If that insider actually exists they should be writing a sitcom for their bosses instead of saying stuff like that to the press.
But seriously, we don't even know if Apple want to call it iTV yet. "Reportedly 'Furious' Over Rumoured" anything makes for a funny headline too.
If I were Apple I'd leverage the iPod name instead. iPod nano, iPod Touch... iPod TV. It's basically what the current AppleTV is anyway, an iPod for the TV.
I doubt any serious 'insider' made those comments. When any tabloid uses those unnamed source quotes, you should discard them immediately. It's just the gutter press and blogtards getting all excited about SEO juice as usual.