Everyone, including Apple, knows that the next logical step in making the Apple TV set-top product is embedding that technology into a TV. It'd be like all the Korean TV manufacturers putting Netflix in theirs. But Apple says no.

COO Tim Cook says:

Today, the go-to-market model for Apple TV is very difficult. Because it would seem that that go-to-market model would lead to the TV. And we have no interest in being in the TV market.

Which leaves them in a weird limbo, because they don't want to move forward, yet they don't want to discontinue the product.

...There's people — and I'm one of those — that they're avid Apple TV users, and so, because their gut says something there, we're continuing to invest in this. But today it's just a hobby.

Unfortunately in business, you've got the mindset that if you're not moving forward you're falling behind, so if they can't figure out what to do with the Apple TV brand, they might just kill it altogether rather than continue to support it without much new development. [Business Insider]