@John Zern
I forgot who wrote this, but I agree that the most salient reasoning on why every internet TV initiative to date has failed is very simple -- techies are trying to sell consumers on TV platforms that require them to "lean forward" when all consumers really want from their TVs is something that allows them to "lean back."
The entire premise of Google TV and every other internet-centric TV platform is that consumers want to actively search for programming in much the same way they do for web content. But, like web surfing, searching for TV programming is fundamentally a "lean forward" activity.
TV viewing OTOH has always been a "lean back" activity. TV viewers don't want to engage and interact. They want the devices to just get the hell out of the way -- click a button or two and be done with it. Google TV is nowhere near that level of abstraction, and seems more geared towards ever growing complexity and connectivity. Might appeal to tech bloggers and geeks, but not your average TV viewer.
Sam talks about the DVR as a "positive differentiator" yet he doesn't even realize that DVR usage is only around 35%. And even with three decades worth of time-shifting video devices in people's living rooms (remember the VCR?), over 2/3 of TV viewing time remains with live broadcast programming. People turn the TV on, lean back, and watch whatever's currently on.
If/when this revolution ever happens, it will not be because someone packed a bunch of web browsing and social networking features into a set-top box.
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