I suspect Steve wanted to sell these aTV now before Google or anyone else's box take off. Plus, Apple data center is not ready yet. Apple did put a4 chip in it. It is base off the ios ecosystem. Sure, there is no harddrive. It will all be in the cloud. First phase, we'll stream stuff from iphone, ipod, ipad, mac to the aTV. Other networks may join via apps on iphone, ipod,ipad later as rentals or subscriptions. Then, apple will deploy its app store for the Apple TV plus some other accessories. That will be phase 2.