Jason Calacanis told CNET's Nate Lanxon that "he knew first-hand that Apple was working on a networked television." From Nate's blog:
These LCD HDTVs will be fully networked, with the ability to stream all your iTunes content from your Mac or PC. In fact, Calacanis told me they'll function like a standard TV with an Apple TV box, only without the need for the box.
In many ways, this isn't surprising news, as Apple already produces a stunning 30-inch display for the Mac. So picture that -- only thinner -- in a bedroom, streaming iTunes movie rentals over 802.11n, controlled with the Remote app on an iPod touch or iPhone.
To which I have nothing to add, except that televisions with web/content browsers in them are obviously the future.