For me, big TVs have been dead to me for a year now. I have a 60" plasma that just sits there, only used about once a month when the family wants to watch some blu-ray/DVD. Probably a good thing since it sucks up a lot of power, not very eco-friendly.
I watch content from several local stations through my smartphone instead, free and legal. And there's apps like Crackle streaming some of Sony's movie and TV content for free too. It's all actually way more content than I have time to watch. And it's much more convenient to watch as it's on demand, and comfortable because I can watch anywhere. The thought of trudging upstairs to the TV at a specific time seems ludicrous to me now.
The question for me is does the internet streaming model work for companies, e.g. can they get enough ad revenue to cover streaming expenses and turn a profit? Or are they running a loss-leader just trying to make sure they don't fall behind the times because they are worried Apple will indeed jump in and destroy them?
Anyway, whatever Apple does will be interesting, but you won't ever find me buying an Apple TV or paying them a dime for anything. I do think this whole area will be turned on it's head over the next few years though.