Tivo and Yahoo sitting in a tree

Tivo seems to be inching closer into to "THE living room box" model of things by working on integrating Yahoo! into their service in order to help justify the $12.95 per month fee.

Here's a screenshot of what they have so far:

As you can see, it looks rather intriguing. But I notice that it definitely doesn't deliver movies to the box (not surprising since Netflix gave up on doing this). This is going to limit it's appeal to me (not that I'd pay for movies all that often, but still having it would be neat to try). The other deficiency is the "walled garden" effect. You only get access to a few services and that's about it. And what about video podcasts? Will they work? How will transcoding between various formats work? Hmmm...how deep does the Rabbit hole go? Speaking of rabbits...