Apple's new 4.2 iOS will be able to stream both music AND video to your TV -- if you pick up one of Apple's new $129 Apple TVs.
Apple's new Apple TV runs the same Apple A4 ARM chip as the new iPod Touch announced today (essentially a thinner iPhone 4 without the 3G componentry) and will be able to stream shows from the iTunes store directly -- as well as your own computer or iPod/iPhone.
Apple has also introduced TV show rentals, which will cut the cost of legally acquiring shows through iTunes -- currently, it stands at $2.99 to buy a TV episode in Australia, while rentals will cost whatever Apple Australia decides is the Australian equivalent of $US0.99 -- it would be $1.69 if they use the same inflated exchange rate as they do for music on the iTunes Store Australia. However, Apple is not saying when TV ep rentals will come to Australia. Currently, they're only available to people with a US iTunes Store account.
The fact that iOS 4.2 can stream video to your TV perhaps goes some of the way to explaining why Apple didn't build apps into the Apple TV, even though it runs iOS -- it leaves the door open for iPhone apps to stream their display to the TV, with the iPhone/iPod being used as a control device only.
iOS 4.2 won't be available for a while yet -- November. But it will also bring multitasking to the iPad, as well as wireless printing from iOS devices ("Print Center". The wireless video streaming function will be called "Airplay". Apple evidently chose to create a new brand rather than extend the existing music-only Airtunes capability.
Meanwhile... here's one we prepared earlier
In the meantime, Apple will release iOS 4.1 next week, which Steve Jobs says fixes the problem with the iPhone 4 proximity sensor, sluggish performance on iPhone 3G/3GS and deficiencies in Bluetooth support (for example, Bluetooth AVRCP device control has been added back in so you can control your iDevice from your headphones or car steering wheel if you have buttons for that.)
Apple is also making an Xbox Live-style gaming service available for iPod Touch and iPhone, called "Game Center", which will allow you to play games against your iOS-device equipped friends.
Apple goes social with iTunes
Finally, Apple is about to introduce iTunes 10 with "Ping", its take on social networking, which will allow you to see what your friends are listening to, as well as follow artists and chat with them (or more likely, their lowly publicist). You can download iTunes 10 now.