I actually see a lot of positives here, but certainly some negatives. And also I have some thoughts on how it makes (or doesn't make) sense for Apple to snap up the alien-wrought 'cable killer.'

Pros:

- Apple doesn't "need" the Hulu revenue (as does an independent Hulu or Netflix or Pandora...), giving it leverage in content deal negotiations. Or, Apple could allow it to be a loss leader to get even deeper into the media in our lives (they certainly have the deep pockets to ink deals favorable to the cable giants if need be, with negligible impact on their ~$80B Warchest). What was the precedent in the deals with the music labels to get them to put their content on iTunes?

- People look at wireless carriers and cable megaliths with similar passionate disdain. And rightfully so. Apple has shown an unparalleled ability to bend carriers to their will. I would love to see the cable giants squirming on Apple's hook. They are, in my opinion, the ONLY acquirer with the muscle to keep the cable co's in their place. I can only imagine the calamity of Carol Bartz negotiating with the cable giants as those guarantees expire.

- It is quite possible that Apple as a company is the toughest negotiator out there right now. This stems from their mindshare and market power, or maybe it's just Steve's giant adamantium balls. (see points 1 and 2)

- The litany of commercials (even if you pay) and user experience issues with Hulu drive me nuts. Possibly no one better to right that ship than Apple.

- They could relaunch Hulu alongside a subscription music service. Hey, it could happen.

- In an unrelated note, I just want to watch Steve Jobs kick Rupert Murdoch in the teeth.

- Exclusivity on a streaming TV service like this would be a big leg up over Google in the Android/iOS battle. It may not be a bellwether in device selection for the HN crowd, but it may well be for the rest of the world (sorry, I just can't call them "normals" anymore, it's sounds borderline derogatory).

Cons:

- Will spark antitrust review/inquiries, but not enough to prevent it from going through. APPL/MSFT/GOOG can't piss without Christine Varney there to record its volume, color, and aroma. She'll be gone next month, but there will be an equally odious character to fill her seat at the Justice Department.

- This could be bad for consumers. While I would love it initially, if the cable co's ever do get the upper hand, it would really piss me off to cut my cable and have the content suddenly get shut off because negotiations went South. Minor annoyance, sure, but still.

- This could be really bad for consumers. How deep into our media consumption is Apple going to get its fingers, nay, tentacles? Are ticketmaster and AMC theaters next? Apple is filling more holes than, well, let's just say than some of the actors in the one content category Apple has shown an unwillingness to jump into bed with.

All in all, like most things Apple does, it could be awesome. But it will no doubt leave a bitter aftertaste whose origin you just can't explain.

Oh, wait. That's the taste of the forbidden fruit in Steve's great walled garden. You always wondered why he named it "Apple." It tastes great, but there's always a price to pay.