The Apple TV redesign could make sense, if the Mac mini M1 Pro rumors are confirmed when it launches, as they would have a similar design.
The console makes no sense. Apple Arcade is not achieving the results they expected, perhaps because the games are not good enough nor do they incorporate a AAA game to the platform (obviously, a game of this style, intended for x86 architecture, for PC, XBox and Play Station, moving it to iOS, with much less graphics power, having to run from an iPad Air 2 to a MacBook Pro M1 Max with max specs, is very complex).
My idea is that the Apple TV would carry an M1, with enough power to keep running Apple Arcade indie games, with a "HomePod" stereo bar replacing the Apple TV and the original HomePod, for about $700. It would be expensive, but it would be a powerful piece of junk, with spectacular sound, and it would be an all-in-one for our TVs.