I agree, and I think Google could have more in mind then just replacing television providers (no small feat). They can start to eliminate television channels. Why must NBC, CBS, or ESPN exist? If Google did "adwords" for television they just allow producers to release a show and then Google injects per-user targeted ads. Google's choice of a tablet as a remote hints at more interactive TV, not just big 30-second commercials, but opportunities to buy, learn, tag, etc. while you're watching a show. It gives producers more control over their content and an opportunity to look at different ways to fund the show's production. Forget 30 minutes show slots... do 48, or 10, or whatever makes sense.

Sure, it probably means more ads, but it could mean more innovative, targeted, and available content too.