The New York Times > Technology > Is Apple Thinking About Mac TV?: "But if Mr. Jobs is thinking about a future role for the quirky computer maker in entertainment beyond digital music, he is holding his cards very close to his chest.
The Mac mini, which sells for $499, is intended to woo Windows iPod users who have been leaning toward a Macintosh but have been put off by the Mac's higher prices. That did not stop speculation that, with a minimum of modification, the Mac Mini would make a compelling interactive television set-top box, placing Apple squarely in competition with TiVo and Windows Media Center from Microsoft.
In an interview after his presentation, Mr. Jobs demurred. The problem, he suggested, was not that Mac TV was not a good idea, but that the cable companies are monopolies. But he did not close the door entirely."
Typical Steve Jobs modus operandi: it's a stupid idea (in this case PC + TV) until it's done à la Apple, at which time it's brilliant innovation.