But they are faced with that anyway. More and more are getting things from the internet. They can either go with it and find an easy way to provide it with ad support, or they can not and we'll all just stick with our nice commercial free torrents. The only way that I can see TV companies continuing is if they start embracing the internet. There isn't really a lot that they can do to stop torrents. They are giving people a choice between watching the shows they want when they want, paying a ridiculous amount to download eps from iTunes, or setting up a nice convenient stream to download the shows automatically.

Exactly. Apple is happy being a niche, because they are still raking in money. Sure, it doesn't hurt if more people start accepting a 1199 computer every 3 years as being part of their budget, but I don't think they are ever really going to have a lot of low end. The common car analogy applies. MS = Ford, Apple = BMW. Sure, both will get you places, but Apple/BMW do it with a style and feel that MS just doesn't. And, like it or not, style is important to a lot of people. See: Macbook Air. Really doesn't compare to a lot of machines in its category (no optical, weight isnt that great, 1 USB, no ethernet, etc.) but people are buying the thing, and its receiving a ton of press just because its thin and stylish.