I think everything will eventually change over to high speed (satellite, digi cable, dsl) data transfer, entertainment on demand. Think mega advanced Tivo, but controlling movies, music, games, computer data, etc. There is already a growing market for home automation (a market I'd love to get a job in), so I see a lot of this stuff really coming to fruition within the coming years.
In semi-related news, coming to Japan late this year, and to the US early next year, is the new PSX, lovingly referred to as Playstation 2.5. It's PS2, but also has a built in hard disc video recorder, satellite tv tuner, memory stick, built in ethernet port, and DVD writer. PSP (Play Station Portable) is also coming. Think of it as a PS version of Gameboy Advance SP, it uses little discs that look like slightly smaller versions of Minidiscs, also has a memory stick port, and, UNLIKE the GBASP, has a headphone jack lol