Many years ago, some engineers working at Apple came up with this really kick ass idea. It was a Web browser appliance that would sit on top of your TV, just like a VCR. Apple rejected the idea. Most likely because they already had Pippin in the channel.
So the WebTV folks hooked up with Microsoft instead...
I bet it would be interesting to take a good inside look at devices that Apple thought about, prototyped, but never developed. Somewhere in Cupertino is a working Apple phone, PDA (beyond Newton), TV appliance and other ideas many of us would love to see developed, but for whatever reason never left the drawing board.
Heck, just think of the protoype computers that Apple must have developed to come out with the iMac, eMac, Cube, G3/4 Tower, the PowerBooks, all of that. It would be interesting to see what they looked like.