Apple doesn't sell cheap, the sixth point aside, I think he makes a pretty good argument. Cheap isn't their business model though. I think its hopeless trying to predict what Apple is going to do. I don't see a reinvention of the TV being profitable for Apple either.
I could see that product/idea selling with most of my family. I just set my mom up with her second roku last month. I am probably going to install a third this summer. The TV is on for everything and in every room. I just dread going there sometimes.