iTV doesn't sound too bad..
To the comments regarding 'just connect your iPod', my understanding was that iPod only supported composite video at 480p (or maybe only i), wheras you can have component and HDMI with iTV (up to 1080p). I'd imagine with iPod you can have stereo and with iTV you'd get at least 5.1 optical out. As well as the fact iTV sounds like it's the 'video airport express', in which case it could boost your existing wireless connection as well [here's to hoping].
A digital HD tuner built in and hard drive *would* be nice, but it would probably cost a mint.