Because a 60 Gb won't be big enough for HD content, and that's what all these geeks in this forum are howling for.
And I don't NEED an HD and Optical drive inside this baby. That's why it has wifi, so I can stream it from my Mac. Apple doesn't want to dilute the central hub of Steve's vision, and that's the Mac, not a set-top box appliance.
I don't care what products are competing, either. Neither does Apple. There were plenty of mp3 players on the market when they released the first iPod, too.
What they are doing, in my opinion, is putting out a product that will, like the original iPod, kick off the market, and get Apple's foot in the door. First, if I am to believe all the rumor sites, Apple has to convince the studios that their business model will fly. Remember the original iPod? Small 5 GB footprint, b&w screen? Not, in and of itself, very exciting.
But it was integrated with the ITMS and the Mac computers running iTunes, and it was that integration that kicked it off from the git go. So is the iTV. You'll notice that the iPod is greatly enhanced from the first generation, right?
What makes you think they won't do that for the iTV? This is, for the want of a better term, a trial balloon. Apple wants to send it up the flagpole and see how many salute. If it gets a good reception, they'll give it a big send-off. If not, it'll get delayed until they can improve it. You think Apple doesn't have folks trolling these forums to find out what their prime targets think about it?
In the meantime, like I said, there are enough folks on here complaining about the cost at just $300. Add even a 60 GB HD and an optical drive, (with the requisite controlling electronics - and the redesign of the case to accommodate the drives) and the cost goes up to over 4 or 500 bucks. (If you think they can hold the cost down to under a $100 increase after redesigning the case you're dreaming.) Then how many will buy it?
I didn't think so.