Apple said it expects to sell more than 1 million new Apple TV units this week in a move that is timed perfectly to mock Google TV.
Steve Jobs' "hobby" is a $99 box that brings iTunes, Netflix, YouTube, Flickr and MobileMe to an HDTV. The first Apple TV didn't sell so well. Jobs took those lessons, simplified and made some headway.
Google's problem is that it saw Google TV as a blend of the Internet, TV and computer. The problem is that Google TV may have been too complicated. No one is going to use a keyboard and mouse on the couch.
Like Apple learned, scaling down a TV effort can work---even though modestly. Google will learn the same. At some point these tech giants will get TV right.