I would settle for a lot less than that, but with plenty of allowance for later expansion.
For instance, HDTV is just overkill when most places have yet to even get SDTV digital broadcasts, and when most displays aren't big enough to even show the difference up. However, I'd like to have HDTV as a later-on option, and not with yet another little black box!1
When it comes to thinking about it, I would say the best approach at the moment would be to try and counter the complexity of the current pile of components on many people's TV-cabinet. I'm picturing an integrated DVD-writer drive and hard drive. I'm imagining neat, modular connections that allow you to plug in 10 game systems and add on components. I'm imagining adding on sattelite, cable, HDTV, Video cassette and so on without having any more remotes or little black boxes (or worse yet, silverish plastic boxes). I'm suggesting firewire connections for video cameras, and of course iChat AV.
Of course, at this stage Apple are still only treating consumer electronics as a potential way that they might expand into new areas, but one that they are definitely researching. Whether they'll actually do it or not depends on a lot of factors ... Will it be cost effective? Will it be in keeping with Apple's image? Will there be a market for it? Can it be sustainable? Will it cut into or boost sales of their other products and services?
HP and Dell are also considering moving into the consumer electronics area in roughly the same timeframe (End of 2005 to mid 2006) so it'll be interesting to see how things play out.