My house has moved into the "unplugged" realm; we stream our content via the internet. Our main appliance is an Apple TV, which we love. Mainly, we prefers its navigation in comparison with our Xbox 360.
The one issue many folks might have is what I'll call release lag. It takes a few days/weeks (or more) for a show to make its way to Netflix or the iTunes store. For me, that's really not it an issue. However, it will be for some.
Apple has some work to do. Right now, navigating the main screen is tolerable, though a bit clunky. However, with each new app & service, it gets messier. Soon, it will become unwieldy. I want to see the ability to organize this "desktop". Folders will be critical. Plus, I want to have a "favorites/bookmarks" section. It would also be good to let me delete apps I don't want.
The range of content amazes and delights me. And the lack of commercials is glorious. And the ability to stream from my iPhone or Macbook further increases the range of content.
I'm convinced this is the future of content distribution. Well, the ala carte model, at least. There is a revolutionary idea out there, getting ready to shift things again. That's the exciting part.