subscribers, and 20% of them can utilize this service. That's less than a million people. Miniscule, when it comes to the amount of people that ALREADY have Vista Home Premium. Not to mention, now most cable companies and FiOS offer DVR boxes, which will greatly impede TiVo's growth potential. Now, there just needs to be an easier, cheaper way to get Media Center to your TV than the $600 price tag Toro talked about. I agree that 'capture the living room' is all important, I just have a feeling TiVO may not win that battle.
I see what you are saying. There is an increasing amount of legal content on YouTube that might benefit from an extension to the television, especially as the quality improves over time.
But much of YouTube's content isn't going to get sharper just because it ends up on television. Even streamed in a little player on a PC, many of the videos are stretching their resolution capabilities. Enlarge them to a living room television scale and you are just going to make a really big blur.