My guess is that he wanted to remove the difference between live and recorded content. It is just content.
Don't just think of pausing live TV or auto-recording favourite shows.
Think more along the lines of anything that has aired becomes immediately available on iTunes. Including all news and talkshow programmes. You just no longer need to care about live or not live content.
Apple would probably stream it to the user.
If you pay, you get it without ads.
But the reality is much more difficult. Local show rights holders, cable and content providers for aired movies all don't want a simplified, unified market. They want the opposite, as much segmentation as possible to keep charging again and again, selling (locally) exclusive content.
That is an uphill battle.
Unfortunately implementing half of it - only certain content is immediately available is less useful, as the whole idea is to eliminate the need to think about airing or aired content. You want to stop worrying about recording certain programmes or missing others.