I downloaded and installed Hulu Desktop this weekend, and I have seen the future of TV. The folks that designed this paid careful attention to the user interface, and the overall look and feel of this software is terrific. It is easy to browse, and you can drill down quickly into a specific area (e.g. Movie Trailers, TV Shows). I have a feeling the designers spent a lot of time looking at the iTunes Store and Apple's Cover Flow interface, because there are not only similarities, but improvements.
If I was a cable company senior manager, first I'd spend some time curled up in a fetal position bawling for Mommy. Then I'd call an emergency meeting of my staff and create an emergency task force to find a new business to get into, like becoming an open access digital transport provider. Once I did that, I'd call Hulu and make a deal to carry their "TV" programming.
Other losers: Google. Google senior execs should also visit the curled up fetal position, because Hulu has completed short-circuited the Google game plan. Hulu has cut out the Web browser, meaning Google will never see a single penny of ad revenue from Hulu Desktop. YouTube, which is a Google company now, is also a big loser. Compared to the stunning quality and ease of use of Hulu Desktop, YouTube looks like some old TV show from the sixties in black and white. In other words, YouTube looks old and tired.