But seriously. I was struck by the complexity of some of the suggested solutions. I have plenty of ideas but rather than go into them in detail, I'll just say this...
Apple succeeds by going with the solution that is simplest to use. If we're looking at some kind of streaming or media server device, we can rest assured that it will have next to no buttons. Settings? Nah. The optimal device would simply let you choose from a list of what to watch.
If they have to sacrifice AV fidelity for overall ease of use, they will. But in general, I think Apple has made better tradeoffs than other companies. While I personally will never buy a 320x240 video clip, it was probably the best format at the time it was chosen. They'll likely bump the resolution when it no longer comes with the same tradeoff.
I predict that any newly announced hardware will be nearly buttonless if not completely buttonless. I also predict that it will be light on the feature list. But in the end, it will still be the most enticing alternative.