I said this awhile back. The iPad is essentially a TV. I didn’t go into as much detail then, then again I didn’t have all of the details.
What John Gruber is saying makes sense, but I’m just not sure about the hardware economics. I would think that Apple would keep the Apple TV (plug in box, as it is right now) around for a few years. This would overlap with the actual television screen that Apple would brand and sell. To begin with it would cannabalize the sales of the larger TV. At the same time, it would allow the platform to grow and accumulate a number of exclusive channels.
After 3 or so years (just a guess), Apple would pull the plug in box and the television screen would be able to sell on content alone.