Actually, I think TVs today are broken.
1. The remote most of us use has many issues, chief among them being their very existance. Voice and/or gesture control can solve this issue. There's some usability quirks with the new XBox/Kinnect implementation, but this highlights very well the direction we should be moving. Siri control of your TV is nearly the same, and probably what most people want anyway.
2. Not so much the TV itself, but the way content is distributed right now needs to change, yesterday. All content should be "on demand". Further, pricing has gotten way out of control. The prices most people pay for cable is not really in line with what they watch.
Both Apple and Microsoft can fix the first problem. Obviously Microsoft is moving to do so, both with the Xbox and with Kinnect enabled TVs rumored for the future. The second problem is harder, but both Microsoft and Apple are trying already, Apple with iTunes/AppleTV and Microsoft with the ZuneMarket/Xbox.
You don't have to replace your existing TV. Secondary devices can be purchased instead. Today's regular TVs are often made into "Smart TVs" through the use of a Blu-Ray player with streaming capabilities. The Xbox and the AppleTV set top box can be used with existing TVs to access what Microsoft and Apple have to offer. The rumored Apple TV and Kinnect enabled TVs just provide the functionality in a single unit, which will appeal to many people.
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