Is the iPhone the new Apple TV?

I read a post on the iPhone Blog today about how an "iPhone HD" might be replacing the Apple TV. I certainly hope that this rumor dissipates into the ether for three main reasons.

First, I think it would be inconvenient. Either you have to keep a potentially clunky cable hookup near your television or you would have to purchase another dock. By having the iPhone docked to the TV, you would lose the ability to use it as a remote control, requiring some other device to be used for that purpose. Additionally, there would be further inconvenience in accessing your media. As it stands right now, I can watch a file copied to my iPhone while my partner either watches streamed or copied content on the AppleTV. If the iPhone replaces the AppleTV, it would make it harder to use files shared within a family and would require some design and engineering on Apple's part to handle situations when the phone is needed for a call, but the rest of the audience wants to continue watching a program.

Second, content updates would become difficult. My iMac and AppleTV sit at home, checking for new podcast episodes every hour or so. If my iPhone did the same thing, the battery would likely run out before the end of the day. Additionally, I would have to keep more of my library of podcasts on the phone than I do now.

Finally, it would involve not only Apple and its content providers in the policing of the device, as is the case currently with AppleTV, but also AT&T. I already have to tolerate service provider decision making when I use my cell phone. I don't want to have to deal with it in my living room. The maze of regulations from private entities is getting more and more convoluted.

Not only do I think replacing the AppleTV with a phone would be a bad move, I also think it is highly unlikely. There are so many problems that would come out of this, and Apple would have an even bigger bureaucratic nightmare to deal with if AT&T and other global cell phone carriers became involved your living room media center. At least for now, I think this is a rumor that we don't have to worry about.