1. Support ARM Processors, to be in sub-$100 box. Even run a full Google TV UI “mode” from the HDMI output of every new Android smartphone (expect Google TV to become a part of Android’s Ice Cream Sandwich?)
2. Support apps like BitTorrent/RSS, Seedbox management with SFTP, Rapidshare/Megaupload streaming, make it the easiest way to pirate all movies and TV shows with a remote control on the TV.
3. Unlock Desktop User Agent in the Flash plugin. The only reason TV websites can block Google TV is because of the Flash plugin not hiding itself as a Flash-for-Desktop user agent. It’s only a question of Adobe and Google making the decision (if the rights holders keep blocking them), they can make Google TV unblockable. Even make it easy to sign up for fast and reliable proxy services all over the world if certain online web TV are being region blocked (make it easy for the world to stream US based Hulu/Netflix/Viacom/etc, UK based BBC, French based France Television, etc..).
I expect that Google is going to announce all 3 at Google I/O. What do you expect Google TV 2.0 is going to be like?
I think the Google TV software needs to be in every cheap media player, in every set-top-box, and basically, it needs to make it easy for every TV user to easily get access to all web video in as few clicks and as little typing as possible. It may bring a keyboard into every living room, but that usage needs to be as seamless and easy as possible, start typing the name of the show and hit enter to tune in to that show, show options, live, on-demand, legal free/paid/ads if available, “illegal” BitTorrent RSS-subscribe Seedbox/SFTP-service-for-anonymous one click reliable add to queue. Another cool app would be Sopcast, and also the first use of Sopcast through seedboxes for “illegal” 10mbit/s or more live streaming of every TV channel in the world, basically make it as seamless as possible for people to cut the cable/satellite cord and replace it with full freedom of on-demand media choices if they so want to, all designed for leanback mode.