The code name has been in the iPhone OS 4 beta SDK for months. Joshua Topolsky reports:
Not only will this be priced to sell (like hotcakes), it seems that Apple is moving away from the model of local storage, and will be focusing the new ATV on cloud-based storage (not unlike Amazon’s streaming scheme, though we’re talking instant-on 1080p, a la Microsoft).
The big question — which I do not know the answer to — is what the interface is going to look like. It certainly can’t be a direct touch interface. You can already use an iPhone/iPod Touch as a remote for the existing Apple TV; presumably that’ll still be an option, but I don’t think Apple can sell a $99 set-top box that requires a $199 remote. And will there be a TV app store? If so, when? (Maybe not right away.) A web browser?