HobeSoundDarryl, would you like to revisit what you were strongly proclaiming 18 months ago when you insisted that Apple needed to ofter some form of Blu-ray and DVR support in the next Apple TV because YOU knew that was what the mass market really wanted?
fpnc, don't be picking fights and very selectively choosing old comments. I have never said they should build in Blu-ray & DVR support. What I have always said CONSISTENTLY is that

TV would be better if it had enough
openess in the hardware that should third parties like Elgato want to build add-on
OPTIONS for those interested in features like BD and/or DVR, it should have that flexibility.
I ABSOLUTELY think it would be a mistake to force features like those on everyone, but I have always maintained that since there are pockets of people who wished the old (and the new) one had more versatility for their own needs, it should be opened up for software apps (to extend the software beyond where Apple wants to take it) and hardware (to extend the versatility beyond where Apple wants to take it). Both would be OPTIONAL extensions for each user, yet it would make the device much more appealing to anyone and everyone interested, selling more units, which would be good for Apple too.
I'm a believer in giving markets of buyers what they want. If some people would like to buy ONE box and also have the OPTION to add BD and/or DVR functionality, it would be better for Apple to have some way to also get their money instead of having them choose a BD and/or DVR with that money (they're spending) that happens to have some of the other features of

TV. More

TV units entrenched in homes becomes increasingly motivating to Studios to put more and more content on

TV.
I've also always been arguing for a 1080p platform as a somewhat "future proof" version as that is the max standard (and will likely be it for a long time). A 1080p

TV will play 720p iTunes "HD" just fine, but a 720p MAX (Apple capped) platform can't really cover this the other way.
So here's a chance for that to finally be realized as well, as apparently the A5 can output 1080p finally bringing Apple's set top box up to a max standard long in place, and pitting its output quality "head to head" against the "bag of hurt". A 1080p version gives all of that quality crowd what they want while still making it possible for the "720p is good enough" people to squeeze every bit of picture quality out of 720p video like iTunes rentals.
If it doesn't show up next week, then the wait continues for a 1080p platform

TV or a good alternative should one pop up. If they would release the

TV software so that it would run on a Mac Mini (new front row), I'd probably have already gone that way. Whether this box can ever work as a BD and DVR,
I personally could care less, but I do think that if there are still sizable pockets of buyers interested in it covering those bases too, having the
OPTION for them to get what they want is better than locking it down and locking companies like Elgato out.
I (personally) want a 1080p

TV to replace the 720p-capped version I bought in 2007. Your "uncanny vision" of something close to what was released in version 2 still missed my personal target so Apple didn't get my money. With this batch of new rumors, there appears to be some chance for a third version which, if involving the A5, might finally give me the easy Apple UI running on hardware that can play back 1080 HD video I've been shooting on camcorders since about 2004-5, processing with Apple movie software as 1080 HD video and importing into iTunes at 1080 where it will play back just fine. I STILL need that last link in the chain between iTunes and the 1080p HDTV.
I want to give Apple some money next week if they deliver something great. iCloud? Lion? Rumors of those have not exactly lit me up but maybe reality will exceed rumors. However, THIS rumor... this rumor is something that will open my wallet immediately if it comes with 1080p... or even if we get new boxes exactly the same as the version out now but with 1080p instead of the "you're holding it wrong" type spins on why 720p MAX should be good enough. 720p caps chosen for me doesn't get my money.