If this recent patent filing is to be believed, then Apple is working on an actual media center solution, not some half-hearted Front Row attempt. The patent, which was originally filed back in late 2005 but was unearthed today, depicts a central “module-controller” that appears to lie at the heart of the media center. Apparently it's a piece of software that sits between other software and hardware, dictating what goes where and when.
You'll see a whole lot of speculation as to what this media center will be able to do—such as wirelessly interface with the upcoming iPhone—but one's thing's fairly certain: Apple not only has designs on your living room, but all aspects of your life's entertainment. I wonder how long it'll be before people start to hate Apple as much as they do Microsoft?