Netflix joins with LG to add Netflix service to LG devices - but only Netflix, so you'll still need your cable box, your Apple TV, your Vudu, another three inputs on the HD TV and a three week training course for family and friens.
Is it reasonable to think that a world with a billion personal channels needs a lot of content to fill it, so is the most cost-effective way to create that to return to the studio system of old?
Apart from issues like DRM that viewers hate, the real reason that online video isn't set to replace mainstream TV consumption is simply that it's grossly overpriced!