Boom. That's the #1 reason why Google TV totally failed.
There was nothing from Apple for Google to copy, other than Apple TV. And Apple TV is only $99.
No way to undercut that price -> no way for Google to profitably steal that idea.
Instead, Google copied WebTV. And I think we all know how that turned out for Microsoft.
Fave you actually used a Google TV? I have, and I must say I really like it. I have two logitech revues in my house that I bought for $80 or so a piece. Granted the initial price point was WAY too high, but at $100 a piece, they're great devices. Before switching to google TV, I used a HTPC setup, and although I could use it, it seemed that everyone else was at a complete loss.
With the google TV, everyone I know could pick up the "remote", and get the TV working in a few minutes. That's no small measure for a system involving a TV, 5.1 Receiver, direct TV/cable box, and a internet TV playback device (the google TV). You hit the TV button, and the TV turns on, AVR, and the receiver turns on and switches to the proper input, and hitting STB will turn on your set top box (as most of them automatically go to sleep). That means someone can hit a few simple buttons, turning on the TV, getting picture and sound.
One of the coolest features of the google TV is that it has an HDMI input port on it. This means that it fits in seamlessly with your existing cable/sattelite box, a key feature that currently stops Apple TV. The simple fact is everyone I know can use my remote to watch live TV,all they have to do is hit the TV button. Now, tell someone with an apple TV (connected to a 5.1 surround sound system, or directly to the TV) how to watch live tV when on the apple TV, or switching to the apple TV when watching live TV. The result will not be pretty, as it will be clunky by nature. Google TV takes over my direct tv box, and even allows me to search for things playing on TV right now. For instance, I'll type NFL and it will list current NFL games. I don't need to know my channels or anything, I can just search, and use a standard keyboard to do this.
Now, I won't claim the google TV is perfect, it's far from it, mine has to be reset way too often, flash is buggy on it (which I need for Amazon VOD) etc. however, if amazon had a better VOD app for it (installable from the google play app store), it would be much better for me. The app store itself is pretty nice and makes the device quite extensible. Although the google TV lacks content, it's great for already downloaded content (streaming from a local PC), works well with VOD services, and most importantly it ties in with your local cable/satelite set top box.