Seems we know what they've been working on now...
http://www.roku.com/netflixplayer/
Sparse on detailed specs, and apparently tied to Netflix only (like a manufacturer subsidized cell phone?). Here's hoping a generic version of this device might hit the streets.

dgburns wrote:

Here's hoping a generic version of this device might hit the streets.

Agreed - once the firmware development is further down the road, a version which is not tied to the Netflix business model could be interesting, even allowing for a significantly higher price.