iTv and Google TV

Apparently both Apple and Google are working on top boxes that will connect to the TV and enable applications to be run. I have yet to read details on what kind of apps will be available or why this would be useful or necessary, or perhaps both companies are blindly pursuing a technology that no one wants or needs. Microsoft has no comment on this technology and seems to be sticking with its bread and butter business of enterprise software, operating system, the office product line,  and the XBox.