The well-known comment in the Jobs biography tipped their hand about a further commitment to TV. Literally everybody I've talked to about it balks at the idea of a full-on Apple tv set. That it's too murky, too much tangling with cable providers. Too much competition with existing set makers without the ability to really revolutionize the form-factor like cell phones. That instead they'd just give you a box that you can plug into an existing TV to make it good.
But Jobs (and Apple) have always been about "the whole widget." Moreover, they have a lot of experience building really great large displays.
Besides, TVs need it now. So-called "Smart" IP tv's are the future. TV's already have Apps. And the experience sucks because Samsung, LG, Sony, etc, are not in the business of making first-class software products. I believe the line where steve said he'd "finally cracked it." Because a lot of us I'm sure can see the rough outline of a product there. Let it run iOS. Let me remote control it with my other iOS devices. Let me integrate iTunes/etc in a first-class way. The murky part is: How exactly do you deal with existing cable content. Can I add HBO West to my home screen like an "app" right alongside the HBO Go app? That integration of these 2 side-by-side systems of content delivery (Cable and Internet) is the detail that I think needs to be "cracked." How great would it be to see this product emerge as posthumous part of Jobs' legacy..