According to an Engadget source - the same one that said the next AppleTV would be a $US99 unit with iPhone guts - Apple's next TV device will be rebranded the iTV. And it will have apps, but it won't play 1080p video.
That last bit has apparently been a point of contention for Apple, but the new unit's internals - reportedly an A4 CPU and 16GB of flash storage - can't quite handle 1080p or 1080i playback. The source says that the iTV will bring apps to televisions, though it's unclear if those will include apps designed for the iPad or iPhone.
While the idea of apps on the TV seems like a grand breakthrough in (d)evolution of the Couch Potato, it'd certainly be a bummer if Apple's renewed push toward the living room couldn't play our biggest and best files. [Engadget]