Seriously, this sounds like Good News for the industry. An API for set top boxes that is more open than OpenTV, and has a sensible desktop client which can preview what it will look like on deployed machines?
Flash can scale for 4:3 and 16:9 machines instead of having a single bitmap font (cf: opentv, mheg, liberate). It antialiases fonts properly (cf: liberate, or 'at all' wrt opentv/mheg). It renders predictably (cf: ce-html). It allows you to use your own display fonts (cf: liberate, mheg), and predict how much content will display per page programatically (scrolling bad, paging good).
It allows for compression of content using zlib, for vector, resolution-independent graphics (smaller than the equivalent, SD-res jpeg).
I'm just hoping it gets deployed widely and that they find a sensible way to have a hardware player.