2007 is the year when PC and TV merge.
Apple TV, as discussed in September, is a small white box that plugs into a flat-panel TV and wirelessly connects to a Mac or PC over an 802.11n network, allowing content stored on the computer to play on the television.
The world does NOT want a third box - we want one. When the iPod plays TV, games, internet browser, video and music, with a DVD player input (and a vinyl record player input just for me), and an external feed to screen and sound system, THEN Apple have made it.
The Skeptic thinks either XBox or PS3 are going to beat them to it in a three-way merger: PC, TV and game station. Unless the Apple/Nintendo thing happens, then all bets are off...