Tangent: I think there's room for an 'Android of TVs.'
This may or may not be Android, which is kind of the problem. The most likely contenders here (Apple, Google, MS, Sony) have a dog in the race & incumbent problems. They committed to an approach or a technology too early. They have a market (eg itunes), complementary products or ecosystems to protect.
What does TV software really need in order to be significantly better than the average smart TV? A handful of core apps (Youtube, Netflix), some local ???Players (these could be introduced market by market) and some experimental/novelty apps (eg Skype, spotify). That's it. That's a good start. Crappy games and access to 99 upstart content marketplaces is not necessary. An app marketplace could come second.
*Vanilla android is not the answer. If it's going to be android it needs to be android for TV.
What you're describing though is currently what the Apple TV is like. It comes with Netflix, Youtube and a bunch of other apps (sports stuff, a few music services, etc). It's missing an app store - but there's a pretty decent chance that will arrive at some point over the next few years (there are so many apps on there at this point that it's becoming a little cluttered, so I think it's coming sooner rather than later).
Even though Apple has iTunes, their primary business is hardware and they don't seem to have an issue with putting iTunes competitors on there.
Of course, the Apple TV has a long way to go. It's still pretty much a hobby project (although recently it's getting more and more updates).
My Apple TV is one of my absolute favorite gadgets. I seriously love this little box. My TV is merely turned on, the HDMI input is selected, and between the neat remote and my iPhone I'm set for all my content.
I wish the YouTube interface was better though, but with the new AirPlay stuff, it's becoming less and less of an issue. Very neat, if you have all the bits for the full "ecosystem" (up until I did, it was a lot more painful and got less use).
Android on the TV is like Windows XP on your phone right now. It's cool that it's possible, but very obviously not what it was intended for. Android for TV (whether or not it is based on Android) needs to be designed for the job.
The Apple TV is problematic in that it can't come bundled with your TV. Part of what I mean by 'Android for X' is that Samsung can put it in their products and build their strategy around it.
I think the best solution would be a well-built remote that plays nice with vanilla android. Android needs touch - that means a quick way to click on various screen elements, a good way to drag-scroll, and a way to use the onscreen keyboard.
A good hardware peripheral should be able to provide those services. Just give me an airmouse with a drag-scroll joystick and a keyboard when I need it. The problem is that most hardware vendors trying to hit this market are serious lowest-common-denominator companies - fly-by-night Chinese manufacturers and whatnot. Sony did it too, but they stuck it to the stillborn Google TV OS.
Take it away from the TV division and get somebody who designs controllers to make the remote. Get the Playstation guys on this. A hybrid between the PS3 Move Controller and this thing:
Because Android is a touch-centric OS. I've picked up some HDMI sticks that put a decent skin on Android and use an AirMouse for the UI, and it's not fun. Most of the apps use drag-based scrolling which is painful with an airmouse, and on-screen keyboards.
That said, a simple clean airmouse is so much nicer than the zillion-button monstrosities of traditional TV remotes.
This may or may not be Android, which is kind of the problem. The most likely contenders here (Apple, Google, MS, Sony) have a dog in the race & incumbent problems. They committed to an approach or a technology too early. They have a market (eg itunes), complementary products or ecosystems to protect.
What does TV software really need in order to be significantly better than the average smart TV? A handful of core apps (Youtube, Netflix), some local ???Players (these could be introduced market by market) and some experimental/novelty apps (eg Skype, spotify). That's it. That's a good start. Crappy games and access to 99 upstart content marketplaces is not necessary. An app marketplace could come second.
*Vanilla android is not the answer. If it's going to be android it needs to be android for TV.