Thanks for the input adzoox!
My take on the so-called 'iBox'
a) I think that iBox is definitley not a name that Apple would use. They could have called iTunes iMusic, or iPhoto iPictures. Both of which are ugly names, thus I think that they would come up with something more interesting, with a less 'blunt' sound to it.
b) I really don't think that it would need a very 900 G3 to do what it does. The Xbox only has a 700 PIII. That's wicked slow, yet since the machine is dedicated to playing games, it doesn't waste any power managing an OS or anything else that a computer has to do all the time.
c) To be competitive these days it should definitley have a bigger hard drive. If it's going to be recording stuff on TV it should at least try to keep up with the huge hard drives that people are putting in DVRs these days.
d) Does a DVR use a lot of memory? It doesn't run any apps besides iTunes. All it would use memory for would be some light caching as video goes in and out (remember NTSC video is 720x480, not the most amazing res.). From expierience Apple has always under-RAMed their computers, and I think that they would never put in more RAM than it needs, and I can't imagine a set-top box needing 128 MB of RAM
e) In contrast to what I said before, it wouldn't need 80 gigs of HD space if it can't get TV listings, and from what they said about it, it doesn't seem like it has a direct purpose, so it would be kind of a multi-tool hub station, DVR, home theater, slide show viewer, wireless tool gizmo.
I think that the person who wrote this about the iBox was trying to incorporate everything about the Mac OS X digital hub, along with a DVD player, as well as a DVR. It has long been known that these kinds of things are messy, when you get a PDA that goes online, records video, makes phone calls, takes pictures and feeds your dog, you get somewhat lost. Apple would really have to work to make this simple and easy to use, and have it be competitive. I think that by releasing this multi-hub thing Apple would be entering a market that has already been established, unlike their early jump with the iPod. The iPod came out before MP3 players had hit it big with the masses, and therefore it was able to be debugged, refined and retooled as Mp3 players took off, now, the DVR, DVD player, and home theater market's are already swarming with incredibly high-quality products, for low prices that work very well. Apple would have to make a complete U-Turn in their typical, 'Release, refine, sit back" strategy, in which they would have had to have been refining and testing for months before now.
From this I think that this rumor is false, or at least incredibly inaccurate.
Thats my $50,000,000, if you disagree then go buy yourself a Twinkie, then eat it while sitting in your car in front of a McDonalds, while listening to Joni Mitchell.