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I think Steve was smoking something before he said this. He says we need to get rid of the box, but we need a box. Which is it? He says we need a box that people will want to buy (oh, hello there, Tivo), but not Tivo (umm… what?). Maybe it’s just me, but it sounds like double-talk.
Then again, Apple has convinced many people to buy anything they release. So, I guess if Apple were to release a box-with-no-box, people would probably buy it. Then, they’d buy the upgraded (read: fixed & fully featured) version 3 months later.