So one of my predictions came true. Apple has announced a media streaming device to be able to watch iTunes movies on your TV. it is called iTV for now, but will be renamed.
More Apple iTV Details
The Apple has the looks of a Mac mini and delivers wirelessly media to your TV. It is not coming right away. It is slated for early 2007.
The user interface dubbed Showtime looks similar to Front Row. See also this story about Apple coming to your Living roomIt is not coming right away. It is slated for early 2007.
More details, photos and screen-shots on Gizmodo's Apple Event coverage.