Engadget released a few more details, of Apple's new TV (iTV) to join its Apple iCousins, that it'll "not support 1080p or 1080i video playback; just 720p." Reportedly this's due to A4 cann't handle higher resolutions. On a positive note, iTV will be featuring the ability to use apps on your TV. How these'll be controlled and used isn't clear at present but one might think of Xbox 360's Facebook, Twitter, or last.fm features to name a few possibilities. Others wonder if they'll have the ability to run iPhone/iPad apps on the iTV as well; however, since your TV isn't touch screen that isn't likely.
Cupertino would be releasing a $99 version of the set top box, similarly sized and packed with internals akin to that of iPhone 4 (A4 CPU, 16GB of flash storage), and will introduce new iTunes streaming services the box could take advantage of.
The iTV is expected to be displayed in the Fall, so get the popcorn ready!