It is obvious that Apple's direction is streaming. Streaming from the cloud is easily done. Streaming from users content is via AirPlay. Apple probably looked at DLNA. It looks unlikely that AirPlay will support 'non-Apple' format such as divx, mkv, flac. And I hope Apple will change its mind. It is not a Flash vs non-Flash issue.

Will Apple TV turns into an app & games platform? I see alot of pluses. Something not in the interactive TV as we know today. I think this is coming, based on what Google is doing. Google probably has some inside info that Apple is developing such, thus Google is developing its own Google TV to compete. But I think Apple's implementation will be something different. Maybe: using your iPad/iPhone as controller, select the game you want to display on your TV and push it via AirPlay, the game will then load and play on Apple TV. Then you use your iPad/iPhone as controller to play the game.