They're getting closer in some respects here while leaving out some of the things they got right.
1) Adding apps is essential. Make it an iPad for your living room because its not going to go over as a pure media player.
2) Consumers might not need 1080, but they want it. I everyone went by their true needs, Apple wouldn't really need a Mac other than the white Macbook.
3) Don't think volume can replace quality on the game front. If you're going to try to compete...