Well didn't it? Considering Youtube and Netflix...
Or is that some specific technology that I don't know about?
No, it hasn't. Still, the majority of TV viewers use TV utility providers, not ISPs. When the average couch dweller sits down, grabs a remote, and turns on Netflix instead of "channel 42" on cable TV, WebTV will be commonplace, but it won't happen until the young Netflix-watching generation completely replaces the older cable-watching generation.
This is moving a lot faster than you think, we may be thinking more in years than generations.