Digg’s Kevin Rose Hypes Apple’s Upcoming iTV

It’s been a while since Apple’s (s aapl) rumor mill has held the attention of the buying public with anything like the hype that led up to the release of the iPad and iPhone 4, but the rumored iTV is on track to come pretty close. The iTV is what sources are saying will replace the Apple TV, despite any qualms a certain British television network may have with the name choice.

Digg founder Kevin Rose is the source of the latest rumors, and he’s reportedly got the inside track on what’s going down with the iTV at Apple. As rumored, Rose says the iTV will be powered by iOS, bringing it into the fold along with the iPad, iPhone and iPod touch. The iPad itself will feature prominently in the iTV redesign, as a huge, awesome remote control. Along with iOS will come apps, too, according to Rose, and you’ll get everything for the low price of $99.

If Rose is right, expect the iTV to look a lot like the Google (s goog) TV devices the search giant unveiled at its presser in the spring., minus the hardware partners, of course. As a result, we’ll probably end up with another battle of the OSes on our hands, one which mirrors pretty much exactly that going on now between the iPhone and Android devices.

Digital delivery of film and television content is definitely the future, whether or not cable and satellite providers see the writing on the wall yet. The living room may not be a central part of Apple’s current business model (Jobs famously referred to the Apple TV as a “hobby” in an interview last year), but for consumers looking to unify their digital lives across a variety of platforms, you can bet it will become important in terms of both at home and mobile device purchasing decisions.

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