That would make no sense in the context of Steve's revelation in the book. He wants it to be as simple as possible. He talks about controlling the entire user experience just like Mac, iPod, iPhone, and iPad. You can't control the ENTIRE user experience if you have to deal with other manufacturer's televisions. When he said that the cable companies' grasp on the industry couldn't be solved by selling people an add on box because they still had to pay for it when cable companies' were giving their boxes away for free, it was true. Saying that he cracked it, means that Apple would have to have the user in their hands the second they walk out of an Apple Store with one of their TVs. You get home, plug it in, sign in with your Apple ID and it already has your iCloud content already on the TV and new content ready to be purchased and watched without involving cable companies.
An Apple TV won't have a lot of the commonly used connectors at the back. Apple is notorious for retiring old I/O in favour of upcoming new tech. Coax, RCA and component are goners. I imagine it will have to have HDMI to gain industry acceptance but even that is not guaranteed.
A simple plug in TV with a power cable, Thunderbolt, with built in Apple TV software, SIRI for more complex actions than what Apple's simple remote can be practical for (text input), a FaceTime camera and WiFi for straightforward connectivity with iCloud and iOS devices.
I'm convinced Apple will hit this out of the ballpark with one minor exception: the price. Apple needs to price this to sell. Otherwise it won't. The days of premium priced Apple products for fanboys are over. Apple is pricing their products more aggressively than ever. They're still higher than the competition, but not enough to keep them out of the hands of most consumers. I don't think they can sell this for more than $1,500 and that's already very high for a 50" HDTV.
So pretty much any TV Set with XBOX360+XBOXLive+Kinect. WOW way to go. That is what Windows 8 already promised.