We’ve shown you plenty of iTV/Apple TV concepts in the past. There are a lot of ideas to improve the TV experience out there, and Apple is working on a solution (if you put some level of faith in the rumor mill, that is).
How would you interact with an Apple TV that replaced your cable box? The above concept video suggests an interface that is controlled entirely with an iOS device. Gestures would be used to swipe through channels and navigate menus. You could use Siri to control the experience and ask questions, which is something that Apple has apparently been experimenting with for years.
These kinds of concepts tend to serve the purpose of getting people thinking, not laying out some detailed model that Apple absolutely needs to follow. There are parts of this video that are well executed, and parts that aren’t. The biggest thing that stands out is the total reliance on software. There’s nothing about the above concept that suggests Apple needing to build a physical television.