Will iTV get the first PA Semi CPU?
..."something to do with the A4's inability to crank on higher resolution content"...
Well maybe the next version of iTV will finally get the CPU that the PA Semi team has been working on since 2008. Apple paid $278 million to bring PA Semi's considerable CPU design talent in-house, and so far we've seen no products containing their work. (The A4 is supposedly the product of Apple's $121 million Intrinsity ARM-optimizer firm acquisition.)
There's a chance that PA Semi's real mission is to create a single CPU architecture that would be used in all Apple products. That would explain why it's taking so long. Supposedly it takes 18 months from start to finish when designing an all-new CPU. And it's been more than 2 years since the PA Semi acquisition.
My silly wild-a** guess is that Apple could scale their "pan-Apple CPU" power in different devices by adding more cores for more power. One or two cores in iPod Touch / iPhone / iPad for long battery life, quad cores in iTV, MacBooks and low-end iMacs, 8 or more cores in high-end iMacs, and 8/16/32+ cores in Mac Pros.
This would allow Apple to become independent of Intel and possibly ARM, it would kill off the hackintosh forever, it would help Apple to further differentiate themselves from the rest of the Wintel crowd, and it would allow Apple to optimize their CPUs for Mac OS and/or iOS. (I am not a hardware engineer, but I wouldn't be surprised if the Intel architecture has tons of legacy Windows-centric hacks.)
Of course, there would be a transition period from Intel and ARM to the unified Apple CPU. But Apple has plenty of experience transitioning their own developers, 3rd party developers, and their customer base to different CPU architectures in the past. 68K to RISC, then RISC to Intel.