Just maybe , maybe Apple could pull this TV off but it has to be, something that is truly innovative. By that I mean features that NO other TV or Set Top Box has today.
That's the key, of course they will, it's what they've always done with other stuff, think different.
I hope that this venture is not a freaking (iCloud) do hickey.
Of course it will be integrated with iCloud if you want, but I'd say that they should make it available also for your local content like they do the current AppleTV. If they want to sell more of them it should be IMO. You know, for those curmudgeons that don't want to spend $60 upgrading their OS for every computer in the house.
Also on that note, if one can afford the TV, one can afford the OS upgrade price.