One key consequence of these TVs is the elimination of boxes, such as the Playstation 3, that previously served this purpose.  In their first XBR9 TV, Sony took the interfact software from the PS3 and installed it in the TV along with key features such as streaming media from a local PC, Amazon on Demand and Yahoo Widgets.  Here is one of the first reviews:

CNet review of the Sony KDL-52XBR9 which includes Amazon on Demand (premium video delivered straight to the TV via broadband).

Review of the Yahoo Widgets which will add new types of services and applications to Connected TVs.

According to Parks Associates, 33% of US households with broadband are interested in  connected set top boxes.  Later this year, awareness and interest may continue growing as connected TVs, no set top box needed, are launched (connect the TV to the router and start using those widgets, streaming video etc).

What’s interesting is that Gen Y, the up and coming generation of information consumers, are interested in the social media features – chat and recommendations both faired well in their interest.  This may go up if, as the new connected TVs are rolled out, these types of widgets are well executed. 

What this all means is that instead of Web video and social media killing TV, TV stands to continue to be major means of communicating with major audiences.  As often happens, changes in the media ecosystem tend to be an evolution and not a revolution.  Communicate with people through TV will not die away but will evolve.