On paper, it makes sense.  Apple likes All-in-ones (see iMac).  Apple is spending a great deal of cash on LCDs for just its Cinema Displays, iMacs and laptop screens?  Maybe there is some additional motivation in there, right?  Everyone is going digital now – analog TV is dying.  Munster further speculates that a “future product transition” — mentioned by Apple CFO Peter Oppenheimer in July — could have been a veiled reference to TVs, given that the transition was cited as a reason why gross margins would fall in sequential quarters. Suggestions previously pointed to tablets, new iMacs and/or lower costs on iPods as a trigger for lower margins. Apple has refused to comment on the possibility of TVs. But again, Apple isn’t really going to be able to compete in the cut-throat low margin HDTV game.  The current Apple TV is only a few bucks extra on the side of these huge purchases and seems to be the way to go.   Its hard to see the value that a combo could add.  Then again, we have Dell displays on our Mac so we aren’t the people to ask.

The device in its current form isn’t too bad as well.  It wouldn’t be rocket science to make it even smaller and cheaper.  Or they could add gaming or 1080p.