Dive into your creative stream
The contenders are the PS3, xbox360, Google TV, Boxee Box and the Apple TV. There are others, but in terms of what is sexy and usable and what will actually fit in most living rooms by the time you have your cable/sat box and your amplifier, I think this covers it.
Since believe in full disclosure, I think it's best I disclose my living room setup, which changes often as my wife or babysitters will tell you. I have a Dennon amp, an Aquos TV and my devices are a Wii, xbox360, and an Apple TV (the new one).
Apple TV
Pros:
Easy to use, very inexpensive, small, low power, networked, iTunes, Airplay, massive potential
Cons:
No 1080p, minimal codec support (formats must be apple friendly), No Games, No Camera
Xbox360
Pros: Powerful, kinect, games and set top, networked, can replace sat/cable box (for AT&T UVerse)
Cons:
Loud, expensive, Zune, requires xbox live gold for Netflix and other things that are free on other systems, has a poor track record for delivering on promises (media center, etc), requires media center to play networked media on a broad scale
PlayStation 3 with Move
Pros:
Blue Ray Disc player, high powered, Networked, Games
Cons:
Expensive, Weak media store, playing local movies requires hacking the system, No Camera, and yes - Blu ray (because who would consistently pay $30 for a movie you watch once?)
Google TV
Pros:
1080p content, Truly a media player, integrates with existing sat/cable box (this is being blocked for some providers), apps, Fling (I haven't seen this working)
Cons:
Different manufacturers with different approaches, no networked media serving working (the revue promises this, but reviews are saying it's not working http://gigaom.com/video/google-tv-review-a-first-stab-at-a-powerful-concept/ ), usability is good for a techie but bad for a novice
Boxee Box:
Pros:
1080P contentTrue media player, apps, content en masse
Cons:
more expensive than Apple TV, the box is awkward and too big, usability leaves something to be desired
To cut the cord..... It's not quite there yet. I don't think any of these players make cutting the cord a reality for the majority of consumers, however, there are certainly a lot of people that are now able to do it. I think Apple may have the best shot at pulling this off in the short term, but if they do, Google will be right behind them. Apple is about 3 major networks away from the tipping point on making iTunes a replacement for a cable box. The issue will be timing. So, the episodes should be available as of the moment they air to download. If they aren't, cutting the cord will remain elusive because as Americans, we want our content, now and real time.
Oh, my beloved Boxee box... I have awaited you like a Cubs pennant or that next flight delay update, or for a politician to actually do something... You get the picture :) I have you installed on every computer, I have the original XBMC by which you are based, but alas you have failed me in timing and design and cost. With Apple TV being so small and cost efficient, I have to say you lose and I would be open to you coming to my jailbroken Apple TV or Google TV in the near future.
Sony, you will fail because of arrogance sadly. By trying to keep things in a closed system (blocking unix installs, etc), you are locking out the potential for what your system could be. The PS3 is probably the one piece of hardware that could do it all, but Sony will never let it happen. To win, Sony could create a small app based on VLC that has the basic network protocols for Mac and PC AND partner up hard with Amazon or GASP iTunes to provide your other content. That doesn't sound so hard does it? The problem is am I going to buy a PS3 for every TV in my house, probably no.
Microsoft, as Forrester said: http://www.youtube.com/watch?v=ov98MFgrp2g&feature=share, you could dominate it all. However, charging me an additional $60/year to watch my Netflix that I already pay for combined with forcing me to use Media Center on a PC that I don't want in order to stream my local library of HD movies makes you a losing proposition. I have 2 XBOX 360s and I have tried for YEARS to make this setup work and no one wants to wait 45 seconds to boot up the XBOX and then 2+ minutes to get Media Center working which may or may not fail if the PC has crashed just to watch a movie on my local network. To win, the formula is the same as it would be for Sony and PLEASE forget about locking me to a Windows machine. At the prices you can pickup an XBOX 360 now, this "could" be an every TV solution.
Apple, well, so far I have you in a dead heat with Google TV. Cost is the major factor here as well as your ability to link up to my iTunes library which contains my library of local content (NAS issue solved), however, please allow the VLC app into Apple TV or "Plex" so we can use additional codecs. Continue to work on NBC and a the HBOs of the world to hit the tipping point for cutting the cord. I REALLY wish you could push 1080p content though and that's really the only big mark against you (although in practice, videos are looking better on my Apple TV at 720p than my XBOX360 at 1080p and I don't know why).
Google, your path is the easiest I think. Lower the price to match Apple and add a VLC app that has networking protocols in it for NAS based playback. The problem is that I don't think Google "can" lower the price to match Apple, so therein lies the conundrum.
What does it all mean?
Well, what is best for you largely will be based on what your home setup looks like already and what is important to you. I don't really see the XBOX or PS3 really making it to every TV in the house (currently 2.93 - http://blog.nielsen.com/nielsenwire/consumer/u-s-homes-add-even-more-tv-sets-in-2010/ ). So, that leaves the Google TV and Apple (since I have essentially eliminated Boxee based on the odd design and massive delays). If I had to choose today, I would say most people have an iTunes account (Mac or PC) that they use to a large degree, so the Apple TV makes the most sense based on it's low cost. For $100, you could buy an external USB harddrive to store movies plugged into any computer with iTunes and for $300 you could put an Apple TV at each of your average 2.93 TVs for a grand total of $400. That's palatable for most of us that are into these things. That said, I see a lower cost Google TV on the horizon that could totally change my opinion.
I hope you enjoyed my take...