Apple's announcement of what will likely be the iPad 3 coincides with GDC. I would think an iPad 3 + 1080p AppleTV is a compelling console replacement. I bet that is their move: to make your TV a monitor for the iPad. That solves the interface issue with TV in one fell swoop.
I think this could work well for some categories of games, for example strategy games but there are still many popular games this wouldn't work so well for at all(driving games, fps etc)
So either they will focus on a different category of gamer/games or there will have to be some other more game specific input device such as a controller.
