To sell the hardware...Steve Jobs wants people with other options to invest in Apple hardware, and then on top of that, pay for rentals that only work with Apple hardware. OK, fair enough, but why limit the audience?
Lease for free for money? Nothing is free. My Comcast box is $13 a month, and never becomes mine. In two years' time, I've given them $300...for nothing, and that doesn't even cover the service itself.So because I refuse to buy a set-top box that is so locked-down and uni-functional, a box that any other content provider would happily "lease" to me for free if I were giving them money on a regular basis (cable co/sat co/netflix)
When another "content provider" offers a set-top box for free, let us know. The Netflix one, when/if it arrives, will be accompanied by a higher subscription fee...and will never become yours (and talk about locked down and unifunctional!).
The Mac mini is a better solution for certain sets of needs, but it's far more than people may need or want in their living room. There's no reason not to offer both. I have no need for a computer connected to my TV, or another DVD player, or a machine that delivers 1080p content from files (since there is none to deliver). The Mac mini is $300 of nothing for me and for most people who have no use for an actual computer in their living room.
tv. why would i want to watch a HD movie on my 24" iMac or my out-of-pocket iPhone when i can enjoy it on my 73" widescreen and home theater surround sound and reap the full benefits of HD?