The Apple home entertainment server?

Merrill Lynch already has a history of being wrong when it comes to Apple stuff
(in October they predicted that the
iPod photo would come out in early 2005—it actually came out the next day), but they just released a report yesterday saying that Apple still has a shot at snatching the nascent digital enterainment home server market away from the PC (even Microsoft's Media Center), and that rolling iTunes, iPhoto, iDVD, AirPort Express, and some sort of digital video recording functionality into a reasonably priced 200GB box "could be Apple's next category killer".