Netflix + TiVo = Couch potato heaven

MSNBC is carrying a story that Netflix and TiVo may have a deal in the works to provide movies on demand from Netflix to TiVo boxes over broadband internet connections. This has the potential, IMO, to be really cool, but I've got a couple of concerns:

1. TiVo boxes need to offer optical audio and component video outputs, to ensure a viewing experience of comparable quality to having a DVD in a home-theater setup.
2. With data requirements for movies becoming ever larger, download times can get pretty slow. Ideally, there would eventually be some national infrastructure upgrade that offers larger available bandwidth to each household than is currently available. The highest downlink bandwidth currently available from Comcast, 3 Mbps, used to download a 5 GB movie would take quite a long time; ~13 hours, assuming that the 3 Mbps rate can be maintained for the entire download.

I guess we'll see what happens.