No, they can't kill off the AppleTV with it's current form factor. They can create a TV, but the current form factor (headless) will remain. If they did, the

No, they can't kill off the AppleTV with it's current form factor. They can create a TV, but the current form factor (headless) will remain. If they did, the Apple TV initiative would fail. And I'll explain why. Just like Apple had to support Windows with their product lines, an Apple TV has to support other TVs. People like to forget that the first iPod didn't support Windows. Also consider that AppleTVs do their part in helping to sell devices. Right now, it's $99 to buy a device to extend the usefulness of my other devices. If we turn that around and I had to spend $2000 for a full blown TV just to put pictures up there? Yeah, not going to happen. Can they release a TV? Of course! Will they rid themselves of the Apple TV as it stands? No. On a side note: > Apple has said before that they break even from iTunes. iTunes exists as a low cost way for them to sell more devices. Yes. And remove iTunes from the picture and the whole ecosystem there, and see how many iPhones or iPods they sell. People buy these devices because of iTunes.