BoomTown’s week began onstage in front of thousands of chanting women. No, Kara wasn’t filling in for Oprah; she was doing something much cooler. She got snagged to moderate a panel entitled “Changing the World Through the Web” at Maria Shriver’s six-year-strong Women’s Conference. Kara’s panel included a group of VIPs from Facebook, Kiva, Blue State Digital–and the Twitterific Ashton Kutcher. With “Mission: Kutcher” accomplished, Kara followed up with the complicated world of MicroHoo and offered analysis on the still-pending search deal. Moral of the story: Commentators should give it time, and Carol Bartz should quit with the Jerry Yang jabs. BoomTown rounded out the week at TEDMED. The conference covered the scalpel’s edge of med tech. And yes, in case you were wondering, synthetic skin feels gross.

Digital Daily covered the real-time search war early in the week when Microsoft’s Bing search folks announced a nonexclusive deal with Twitter to feed on its data stream. The deal did put Bing out front for once, but no one knows if the new info source will turn into profits for either search group. In a post foreshadowing a grisly murder, John reported results from a ChangeWave research study that placed the iPhone within striking distance of overtaking the Blackberry from Research in Motion (RIMM) in the smart-phone market. Okay, maybe it wasn’t that grisly, but it’s Halloween. Digital Daily rounded out the week by adding the iPhone to the pantheon of cat, dragon, rat and rooster that occupies the rim of your Chinese restaurant placemat. Apple’s (AAPL) iPhone officially made it to China this week, though without its signature Wi-Fi, and at a much heftier price point.

Peter Kafka lives at the crossroads of media and tech, and that’s exactly where he was almost run down by the Windows 7 “Family Guy” episode. Microsoft (MSFT) apparently bailed out of the deal when it took a closer look at what was actually inside. From the “not so fast” files, Peter covered a report from Interpublic Group (IPG) noting that ad revenue isn’t quite as sunny as some have suggested. Grim economic times caught up to AllThingsD’s big brother late in the week when The Wall Street Journal closed its Boston bureau. The move resulted in nine job losses, despite significant resources being poured into the paper by parent News Corp. (NWS).

The leaves are changing color over at Personal Technology, and Walt sensed that chill in the air meant it was time for his annual fall computer-buying guide. Operating-system choice was a big discussion; but he also touched on the latest must-haves in the memory, graphics, processor and form-factor categories. With a cup of Earl Grey tea to fend off the autumn chill, Walt trudged out to Mossberg’s Mailbox this week and came back with a fistful of letters. He dutifully replied to a question about migrating Microsoft files to a Mac running windows, offered clarification on the Windows 7 upgrade process, and weighed in on the rumor of a pending Apple device below a laptop but above an iPhone.

Katie finished it all off with a deep dive on the two latest netbooks. The HP (HP) Mini 31 and the Nokia (NOK) Booklet 3G both offer high style compared with their competitors, and each boast much higher screen resolutions than previous models. Though she came down on the side of the Nokia, Katie remarked that neither option would disappoint.

Bundle up as you head out for tricking and treating, and learn from Weekend Update’s mistakes. Remember to check and make sure that scary face is actually a mask before you bring that new friend home.

Wednesday morning, Boomtown opened with the exclusive confirmation we’d all been waiting for: Microsoft’s Bing search engine had inked deals with Twitter and Facebook. The age of real-time is upon us. As if the world weren’t complicated enough, Microsoft (MSFT) opened its own Apple stor… er, Microsoft stores to challenge Apple’s (APPL) retail success. Kara went in like lion and out like Carl Icahn this week with a Friday profile of the mogul. Icahn, activist investor and owner of the world’s best name to precede “haz cheezburger,” quietly left Yahoo’s board this week waving a flag of defeat at CEO Carol Bartz.

Digital Daily took a hard look through the Windows this week. John covered the Microsoft’s release of the new leaner, meaner Windows 7. John’s conclusion: Microsoft’s lucky number could be seven, even if that’s just because it’s anything but Vista. Hopefully they programmed this one with 20 percent more customer goodwill. John reminded us this week that you never can tell what John McCain is going to do next, unless you follow the money. Maverick McCain introduced a bill to prohibit the Federal Communication Commission from implementing the Net neutrality rules it released in recent weeks. Digital Daily wasn’t too surprised to see Sen. McCain take the bold position, as it’s squarely in front of the same telecom industry that has been so generous to him in the past. To round things out, John covered a particularly interesting legal chess game/slap fight between Nokia and Apple. Nokia (NOK) may have sued Apple (AAPL) over cellphone patents, the analysts say, as a way to fend off possible suits in the other direction over Nokia’s multitouch assets.

MediaMemo makes sense of that crazy New York state of mind. That clarity was more valuable than ever this week when Demand Media got in our faces. Peter explained Demand’s model for flooding the net with cheap news stories designed to maximize clicks and add revenue. We’ll have to see how the “content by the numbers” game plays out. In the latest installment of the Condé Nast saga, Peter brought news of a new attempt to grab some of those new media dollars. GQ Magazine will offer its December issue in an iPhone version. This move comes during a round of downsizing all over the Condé empire. While Condé Nast’s strategy seems to be to get users to pay for something they couldn’t get before, it appears that Hulu plans to ask users to pay for something they can currently get for free. Hulu doesn’t know how it will happen yet, but the video service is looking for a way to begin monetizing its vast collection of movies and TV shows. If the company goes with “Hulu Plus” as a subscription option, maybe Peter will get a nod to the naming rights.

Walt spent his column inches this week on the evolution of the Mac. Midweek, Apple released refreshed versions of the iMac and MacBook, as well as the new Magic Mouse. All signs seemed positive with the new products, which feature updates like a larger screen option for the iMac and a rounder, more lovable case for the white plastic MacBook. When Walt went out to check the mail, Mossberg’s Mailbox was again full of Windows 7 questions. Walt discussed some of the new low-vision features in Windows 7, explained the admittedly complicated price points and told readers where to download the operating system.

Katie brought a sparkle to the week with a review of Goby, the self-proclaimed search engine of fun. While she was impressed by the concept, she spotted some gaping holes in search returns, like hundreds of missing events she knew to be on the calendar and others that had already come and gone. Goby might be a great idea, but Katie won’t be relying on it until things like accuracy and timeliness are better addressed.

Weekend Update can make two promises for what’s coming next. First: If it is happening in tech, you will find it at AllThingsDigital. Second: Weekend Update promises to keep the ghost puns to a minimum in the next edition.

The judge presiding over the case, who’d been urged by the U.S. Department of Justice to reject an earlier version of the settlement, set that date during a morning hearing so brief that when MediaMemo’s Peter Kafka asked Google CEO Eric Schmidt about it at a company roundtable this morning, Schmidt was unaware a date had been set. When Peter broke the news to him, Schmidt didn’t have much of a comment, but he did speak briefly about the settlement and Google’s view of it earlier in the morning.

From Peter’s paraphrased notes on the session:

With respect to book search, we were doing something that we thought was appropriate. We were sued, and after three years of discussion we’ve come to a settlement. This is perfectly normal. From our perspective, this is a settlement we like, it’s a settlement we think they’ll like, and we’ll hear what the court says, within minutes. Let me reframe your question: There’s nothing particularly exclusive about what we’re doing. The rights registry we’re doing is for the benefit of orphan works. “It’s not a particularly good business for us. We’re doing it because we think it’s the right thing to do.” We don’t think the settlement is perfect, but we think it’s good.

Though it’s not yet clear what form the revised settlement might take or what adjusted terms are being discussed, Google and the authors and publishers it has allied with it have quite a few critics to appease, including academics, librarians, privacy advocates, would-be rivals and the French and German governments.

Kara was half James Bond, half Indiana Jones in the cities and jungles of BoomTown this week. She jet-setted, jet-lagged and still managed to report on a genuine cougar fight.

BoomTown waved goodbye to merry old England and racked up some more frequent flier miles early in the week heading back to the techie embrace of Silicon Valley. Before her tray table was locked, though, Kara made a quick stop at music darling-of-the-moment Spotify. Daniel Ek, founder and CEO, hopes to bring its pay-per-month music service to millions of American mobile devices, to add to its hefty presence in the U.K. and Europe.

As D-Force One touched down at AllThingsD headquarters, one of the valley’s original major players shook things up with a $100 million branding move. Yahoo (YHOO), possibly now spelled Y!hoo, changed its brand in support of an overall shakeup of its services. Kara hearkened back to the D conference and wondered if rebranding the company Y!#@&$oo might have been more appropriate, considering CEO Carol Bartz’s preference for “salty” language.

And not to be left out of a worthy chuckle, BoomTown brought readers the inside scoop on the cougar that came to town. Yes, a cougar–or mountain lion, if you’re from California–was seem roaming the hills above Microsoft’s Redmond, Wash., campus this week. The company circulated a fairly priceless memo that included tips on how to successfully fight a cougar. Any such advice against snow leopards, however, was omitted.

As Kara was jet lagging, John was running full-tilt over at Digital Daily. On Monday, the Federal Trade Commission released a new proposal to institutionalize Net neutrality. The proposal would ban Internet service providers and data deliverers from prohibiting or throttling content to promote their own services. John pointed out that it wasn’t too surprising that AT&T (T)–and Republicans–weren’t too happy with the move.

While politicians exercised their series of tubes, Microsoft (MSFT) was busy shadow-tablet boxing. John filed a report about the first Microsoft device designed exclusively to compete with a product Apple (AAPL) doesn’t make. The “Courier,” as the two-page “tablet-book” is called, features some decidedly un-Apple-like interfaces, unless of course you look a little farther back to the days of the Newton.

To finish out the week, Digital Daily took the AllThingsD time machine back to 2003, when Apple was rolling out its revolutionary MMS service. Sometime Friday, iPhone users were suddenly able to share pictures with friends over the air. Unless they already use Flickr, Facebook, or about a zillion other apps that basically do the same thing.

MediaMemo explored its inner, or maybe outer, geek this week, beginning with the Gizmodo annual gallery show. The charity event featured musical Tesla coils, Star Trek props and a “Microsoft Surface”-like computer with a mud-based (not joking) user interface.

Peter continued the browsing theme, reporting that Yahoo and Google were both back in the market for acquisitions. Google (GOOG) CEO Eric Schmidt said he had his checkbook open again, now that “the worst is behind us.”

Even if Yahoo and Google are in a buying mood, one particular VC firm isn’t feeling so flush. New York’s Union Square Ventures opted out of the latest round of Twitter fund-raising. Peter hazarded a guess that the now-famous $1 billion valuation may have had something to do with it.

Across town at the Mossberg Solution, Katie gave readers a complete rundown on the Microsoft Zune HD. The iPod-hunting media player is now in its fourth generation. The player got high marks in the style and widgets categories, but still needs a solution to the confusing “points system” purchase interface. The problem with Zune isn’t the player, it seems, but the stuff Zune isn’t connected to.

It’s going to be another week of electro-awesomeness here at AllThingsD. Until then, always remember that you should never turn your back on a cougar. The safest way to escape is to buy it a pomegranate martini and squeeze out the window of the men’s bathroom.

Geekfighting may never become its own UFC event, but following tech news this week seemed, in places, like a view to a big, well-funded cage match. Things got so rowdy that Kara Swisher could hear them all the way across “The Pond.”

Before heading off on her tour of Euro-BoomTown this week, Kara set off for Carlsbad, Calif. to visit with Warren Buffet and the ladies of Fortune. Après Buffet, readers were treated to an exclusive interview, Kara-style, with Loïc Le Meur, Seesmic founder and namesake of the Web’s cutest logo. Kara wasn’t just visiting Europe for some cute overload, though. She wired back a report on the Oxford Social Media Convention, where she spoke on social media’s effect on business. Kara rounded out her week with rowdiness and the legal tantrums of Skype founders Zennström and Friis.

Closer to home, Digital Daily covered the media battle between Apple (AAPL) and Google (GOOG), which recalls a shoving match between the prom king and the captain of the football team. Apple continued to insist that it was still “studying” the proposed Google Voice app for iPhone, while Google insisted that it had already been rejected. It’s tough being the popular kids.

Between the smartphone scuffles, Palm CEO Jon Rubinstein was urging everyone to play nice, even as Palm still may have to fight for survival.

The Silicon Valley malevolence even spread to Gotham early in the week. MediaMemo got the backstory on how the New York Times was hacked into spreading malware to its Web visitors. The explanation: It sold an ad to hackers, who posed as mild-mannered VOIP client Vonage (VG) to make the purchase. Meanwhile in a related–or not–story, Microsoft is seeking and suing some mystery malvertisers who perpetrated a similar scheme with ads sold by the software giant. Whether it is a growing trend or a few overachieving hackers, it was a tough week in ad land.

Amid all the kneecapping and eye-gouging, all things Mossberg was a helpful calm in the storm. Walt liked the new features in iTunes 9 and found it uncluttered, easier to use and more intelligent than its predecessor. Also among the hits were upgraded management and improved content-sharing.

Mossberg’s Mailbox was stuffed full of sage advice about online backup as the kids go of to college, compression and the vinyl vs. digital dilemma, and some on-target advice for the family genealogist making the switch from PC to Mac.

The Mossberg Solution delved deeper into email mastery with some unmissable tips and tricks for Microsoft Outlook users. Katie made an industry standard better, and even gave readers a peek into some coming attractions for Outlook 2010.

Tune in next week. We’ll keep bringing you the blow by blow ’til the final bell.

BoomTown was abuzz with Pixis, Plums and power this week as Kara focused on tech that wasn’t Apple, and reminded us that lady geeks hold the power in Silicon Valley.

While Apple was gathering clouds for its Rock and Roll storm, Palm (PALM) released the teeny Pixi, designed, Palm hopes, to steal some of that Apple (AAPL) thunder. The Pixi smart phone, while smaller and thinner, reported Kara, has fewer features and less power than the already available Pre.

Small can be good in the world of tech, and BoomTown reported that a certain Nordic tech behemoth thinks so too. Nokia (NOK) announced that it had acquired “microsocial networking” start-up Plum, whose signature offering allows users to build smaller, more intimate electronic social networks.

Kara did it “like a boss” this week and highlighted the tech sector mavens from Fortune magazine’s annual list of most powerful women. Ursula Burns of Xerox (XRX), IBM-er (IBM) Ginni Rometty and Oracle (ORCL) President Safra Catz were among those at the top. BoomTown will be at the upcoming conference associated with the Fortune list, so look for Kara’s Flip video interviews with these Titanias of tech.

It was nice of Apple to release new iPods just in time for John’s birthday this week, and Digital Daily returned the favor with high-bandwidth, hard-rockin’ coverage of Apple’s music-themed event, complete with live photos and blogging. John liked the video feature of the new iPod nano, but focused on the biggest news of the week–Apple’s upgraded CEO.

Digital Daily’s Apple coverage didn’t stop at The Steve. Ever since announcement of the exclusive Apple-AT&T (T) partnership, current and would-be iPhone freaks have speculated as to what kind of deal will be struck when that contract expires. John reported that iSuppli prognosticators think the agreement may be extended when it runs out in 2010.

John closed out the week with Twitter leaks about the newest incarnation of Microsoft’s (MSFT) Google-toppler (GOOG), Bing. Microsoft showcased Bing 2.0 at the annual company meeting, which some employees took as a green light to tweet away about the unreleased product. Microsoft HQ was more tight-lipped, telling John only that the rollout would happen over the next few months.

MediaMemo followed the money this week–specifically advertising dollars. A year after the Lehman collapse, Peter cited a MediaPost survey that showed some growth in ad spending. In a down market, Peter reminded, sometimes the only place to go, is up. Let’s hope so.

Not to be left out of Apple’s party, MediaMemo covered the release of an iPhone app from RealNetworks (RNWK) that brings all-you-can-eat music for a monthly fee. Wall Street barely blinked at the deal, but changes may come if the service catches on as competitor Spotify has in Europe.

And while the NFL won’t let players tweet from the end zone, it is upping its tech quotient by bringing blacked-out games to your Internet browser. MediaMemo reported that the lower-attendance games would be available to tech-savvy sports nuts–after midnight on game day. Get out the Fritos and espresso, guys, its game time.

True to form as the Lincoln of our very own Mt. Techmore, Walt’s address this week was aimed at helping the wayward get back on track with a bevy of new iPhone navigation apps. This new breed of high dollar apps harnesses the power of the iPhone 3GS to replace those ever present dash top GPS navigation units.

Walt extended his techno-presidential benevolence with another installment of Mossberg’s Mailbox. Networked storage, Quicken for Mac and the ominously impending switch to Windows 7 were all up for discussion.

At the Mossberg Solution, Katie tested Postbox, software designed to bring novel management solutions to your inbox. Developed by some of the guys from Mozilla, Postbox does offer lots of great features, Katie said, even if the switch to the new tools might not be easy for all.

Lots more shiny new tech talk next week. Stay tuned.

The Open Book Alliance formally launched the manifesto this past week with which it’s challenging Google’s settlement with authors and publishers. The organization now has a Web site and quite an array of allies–which include, of course, Microsoft (MSFT), Yahoo (YHOO) and Amazon (AMZN). And as if Google doesn’t have enough on its plate, turns out that all along, Microsoft has been holding regular “Screw Google” meetings, the bastards. Uh, I thought that’s what people pay good money to learn in Business School. On a happier note, Howard Stern fans everywhere were happy to learn that Sirius XM (SIRI) has debuted a device that can turn an iPhone or iPod touch into a full-fledged satellite radio.

Over in Personal Technology, Walt reviewed Snow Leopard and found it to be an improvement on its predecessor, but with a lot of the upgrades under the hood invisible to most users. Not the typical object of desire we’re trained to expect out of Apple. In Mossberg’s Mailbox, Walt answers reader email about choosing a vendor to buy a computer online and setting parental controls in Firefox. In The Mossberg Solution, Katie Boehret explores the trials and tribulations of BlackBerry and iPhone users switching one for the other.

More next week.

Digital Daily came bearing sad news on Monday: The Apple (AAPL) event scheduled for Sept. 9 will not have anything to do with a tablet computer. Just music. And from an organization vulnerable to Palm (PALM) poachers. Presumably, all managers present will be exercising caution and using peripheral vision. Netflix (NFLX) was the recent recipient of good news, as John reported this week: Analysts’ research shows that the DVD-by-mail business has a lot of life left in it. Now, if Google (GOOG) will just stay out of that business. The search giant, in any case, might be a bit preoccupied by the Open Book Alliance and that group’s opposition to its Google Book Search Settlement, the $125 million deal that will allow Google to digitize and monetize some 18 million books. Probably won’t be preoccupied for long, though.

MediaMemo returned this week with an explanation for why the relatively mediocre iPhone camera has become the favorite camera on Flickr: It’s already in your pocket, and no one wants to carry another gadget around. Which is likely to become a more common refrain as high-end handsets grab more marketshare than ever and the quality of secondary functions improves. Another common refrain: The one where media companies start charging for content, and people start paying. News Corp. (NWS) (which owns this Web site) is working on assembling the critical mass of publishers it believes is necessary for making this possible.

Over in Personal Technology, Walt Mossberg reviews a robotic investment adviser called Cake Premium and points out some of the reasons you may or may not want to follow its suggestions for what to do with your 401(k). From Mossberg’s Mailbox, Walt answers questions about Windows OS upgrades on the Mac, and some follow-up questions about DriveSharp. In The Mossberg Solution, Katie Boehret tests out Rosetta Stone’s (RST) Totale, a web-based language-learning system that might be the next best thing for immersing yourself in another culture.

“Contrary to published reports, Apple has not rejected the Google Voice application, and continues to study it.”

So begins Apple’s response to the Federal Communication Commission’s inquiry into its rejection of the app and of its App Store approval process. Seems Google Voice was withheld from the App Store not because of any ill feeling toward Google or a nefarious request from AT&T, but because it too closely mimics the iPhone OS, including management of calls, voicemail and text messages. From Apple’s statement:

Question 1. Why did Apple reject the Google Voice application for iPhone and remove related third-party applications from its App Store?

The application has not been approved because, as submitted for review, it appears to alter the iPhone’s distinctive user experience by replacing the iPhone’s core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voicemail. Apple spent a lot of time and effort developing this distinct and innovative way to seamlessly deliver core functionality of the iPhone. For example, on an iPhone, the “Phone” icon that is always shown at the bottom of the Home Screen launches Apple’s mobile telephone application, providing access to Favorites, Recents, Contacts, a Keypad, and Visual Voicemail. The Google Voice application replaces Apple’s Visual Voicemail by routing calls through a separate Google Voice telephone number that stores any voicemail, preventing voicemail from being stored on the iPhone, i.e., disabling Apple’s Visual Voicemail. Similarly, SMS text messages are managed through the Google hub—replacing the iPhone’s text messaging feature. In addition, the iPhone user’s entire Contacts database is transferred to Google’s servers, and we have yet to obtain any assurances from Google that this data will only be used in appropriate ways. These factors present several new issues and questions to us that we are still pondering at this time.

Question 2. Did Apple act alone, or in consultation with AT&T, in deciding to reject the Google Voice application and related applications? If the latter, please describe the communications between Apple and AT&T in connection with the decision to reject Google Voice. Are there any contractual conditions or non-contractual understandings with AT&T that affected Apple’s decision in this matter?

Apple is acting alone and has not consulted with AT&T about whether or not to approve the Google Voice application. No contractual conditions or non-contractual understandings with AT&T have been a factor in Apple’s decision-making process in this matter.

In a response of its own, AT&T (T) also said this was the case:

1(a). What role, if any, did AT&T play in Apple’s consideration of the Google Voice and related applications?

AT&T had no role in Apple’s consideration of Google Voice or related applications.

1(b). What role, if any, does AT&T play in consideration of iPhone applications generally?

The Apple App Store is owned, operated and controlled by Apple, not AT&T, and Apple makes the decisions regarding the specific applications that are approved for use on the iPhone or included in the Apple App Store. AT&T does not participate in Apple’s day-to-day consideration of specific applications, nor does Apple typically notify AT&T prior to including applications in the App Store. Apple also does not usually advise AT&T after specific applications have been added to the App Store, which reportedly contains more than 65,000 applications. AT&T has had discussions with Apple regarding only a handful of applications that have been submitted to Apple for review where, as described below, there were concerns that the application might create significant network congestion.

And what is Google’s (GOOG) public reply to the whole affair? Nada. The company had more to say to the government, via a response to FCC queries. But in the copy of the document that’s been released for public consumption, the most interesting stuff has been redacted. To wit: “What explanation was given (if any) for Apple’s rejection of the Google Voice application?…Please describe any communications between Google and AT&T or Apple on this topic and a summary of any meetings or discussion.” (Click on text below to enlarge.)

Now that’s a little odd, isn’t it? Why would Google ask the FCC to redact portions of its statement? Says Google: “[Because the redacted] information relates specifically to private business discussions between Apple and Google and, as such, it constitutes commercial data ‘which would customarily be guarded from competitors.’”

That satisfy your curiosity? Doesn’t satisfy mine, either.

(Peter Kafka contributed to this post.)

UPDATE: AT&T may not participate in “Apple’s day-to-day consideration of specific applications,” but its presence is still felt during the approval process. From Apple’s (AAPL) response:

There is a provision in Apple’s agreement with AT&T that obligates Apple not to include functionality in any Apple phone that enables a customer to use AT&T’s cellular network service to originate or terminate a VoIP (voice over Internet Protocol) session without obtaining AT&T’s permission. Apple honors this obligation, in addition to respecting AT&T’s customer terms of service, which, for example, prohibit an AT&T customer from using AT&T’s cellular service to redirect a TV signal to an iPhone. From time to time, AT&T has expressed concerns regarding network efficiency and potential network congestion associated with certain applications, and Apple takes such concerns into consideration.

UPDATE: An interesting nugget from AT&T’s statement:

It is widely recognized by economists and jurists that parties to strategic alliances in competitive markets may enter into contracts to promote and protect their respective business interests and to refrain from taking actions adverse to those interests.12 Consistent with such lawful, economically efficient practices common among parties to strategic alliances, including participants in the mobile wireless marketplace,13 AT&T and Apple agreed that Apple would not take affirmative steps to enable an iPhone to use AT&T’s wireless service (including 2G, 3G and Wi-Fi) to make VoIP calls without first obtaining AT&T’s consent. AT&T and Apple also agreed, however, that if a third party enables an iPhone to make VoIP calls using AT&T’s wireless service, Apple would have no obligation to take action against that third party….AT&T indicated to Apple that it does not object to Apple enabling VoIP applications for the iPhone that use Wi-Fi connectivity (including connectivity at more than 20,000 Wi-Fi hotspots operated by AT&T that may be used by iPhone customers for no additional charge) rather than AT&T’s 2G or 3G wireless data services….we plan to take a fresh look at possibly authorizing VoIP capabilities on the iPhone for use on AT&T’s 3G network.

“I think the whole category is still a hobby right now. I don’t think anybody has succeeded at it. And actually the experimentation has slowed down. A lot of the early companies that were trying things have faded away. So I would have to say that given the economic conditions, given the venture capital outlooks and stuff, I continue to believe it will be a hobby in 2009.”

– Apple CEO Steve Jobs, October 2008

“We still consider this a hobby. It is clear that the movie rental business has really helped Apple TV and there are more and more customers that want to try it. And we’re going to continue to invest in it, because we fundamentally believe there is something there for us in the future.”

– Apple COO Tim Cook, January 2009

There’s not much of a business yet in Apple TV, as Apple’s leadership often notes. But there may be soon, with the market for connected TVs evolving as it has been.

In a research note issued this morning, Piper Jaffray analyst Gene Munster says the time is right for Apple to release the next iteration of Apple TV–one that offers DVR capabilities and supports iTunes TV show subscriptions.

“Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub-library of its TV shows for a standard monthly fee ($30 or $40 per month),” Munster writes. “Such a product would effectively replace a consumer’s monthly cable bill (~$85/month) and offer access to current and older episodes of select shows on select channels.”

Further, Munster notes, “The selection would dictate the value, and several tiers could be offered, but we see this as one way for Apple to leverage its large iTunes content library as well as its unique Apple TV hardware in order to get digital video to the TV for a price significantly less than the average cable or satellite TV bill.”

Makes great sense. And if Apple (AAPL) were to launch these services in concert with App Store support, as Munster has suggested in the past, it would be a pretty compelling proposition. And it would set the stage for the next evolution of the platform, the Apple Television, an Internet-connected TV with onboard DVR and media center functionality.

Says Munster:

“Beyond new hardware with DVR or iTunes video subscription features, we believe the 2-5 year roadmap for the Apple TV product lineup is robust. To begin with, Internet-connected TVs with interactive features will likely gain popularity in the next several years. Apple could differentiate itself in this market as a seasoned software developer competing largely with television hardware manufacturers that do not excel in the software arena. The device could also bring iPhone games, a relatively new segment for Apple, to the television.

“While this is unlikely in the near term,” Munster continues, “we believe the iPhone will succeed as a portable gaming platform and Apple may consider bringing higher quality games developed on a similar platform to the TV. The iPhone app developer community is already robust, and Apple could leverage those developers to enter the gaming arena on the TV. In fact, the iPhone or iPod touch could itself operate as a touchscreen gaming control for a game-centric Apple TV.”

Again, this makes great sense, though TV hardware is not an easy business–just ask Sony (SNE). But, as Munster aptly notes, it might be quite a bit less difficult if Apple were to “change the rules of the game,” something it’s done in a number of markets already.

That said, as Media Memo’s Peter Kafka just reminded me, the cable companies are working very closely with Hollywood to make sure it’s difficult for people to replace their cable service. They’d almost certainly attempt to sack an initiative like one Munster describes above.

On a trip to Seattle, BoomTown visited the headquarters of the Pet Holdings empire, which includes Lolcats (icanhascheezburger.com), Fail Blog and now, Emails From Crazy People. While there, Kara filmed a video with Ben Huh, CEO of the (profitable!) company. There is obviously a method to Huh’s wackiness.

Elsewhere in Seattle, BoomTown got some of the lowdown on the machinations in the wake of the Yahoo-Microsoft deal. Satya Nadella and Yusuf Mehdi are just two of the Microsoft (MSFT) execs charged with leveraging the deal to knock Google (GOOG) out of its number one spot. They each sat down in front of the Flip camera to share their thoughts.

BoomTown also noted the beginning of the Yahoo-Microsoft regulatory filings this week and provided the full document of Yahoo’s (YHOO) 8-K to the Securities and Exchange Commission about the deal. To think: this is only the tip of the MicroHoo iceberg.

If you were one of the many wondering about Twitter’s high-profile outage this week, don’t worry–Kara provided a handy translation of the co-founder Biz Stone’s blog post about the whole matter. If you weren’t wondering at all, you’re not alone–Kara’s mother and older son, Louie, think the whole thing is a waste of time.

Google CEO Eric Schmidt’s resignation from Apple’s (AAPL) board of directors was just some of the news on Digital Daily this week. In some of the other news, the FTC responded with a “nice try, but we’ll continue our investigation anyway.” Better news for Apple, then, that it claims 32 percent of operating profits in the handset industry, even though it’s only the fifth-largest handset vendor.

In the not-so-good department on Digital Daily this week, NewsCorp. (NWS) (which owns the Wall Street Journal and this Web site) reported a 32.5 percent drop in fiscal-year-adjusted operating income–largely because of its “red-hot” social network, MySpace. Elsewhere, Cisco (CSCO) reported a 46 percent drop in quarterly profit while still beating the Street’s estimates, and Vonage (VG) recorded a second-quarter profit of $2.3 million while losing 89,000 net subscribers in the same quarter.

On Personal Tech, Walt Mossberg reviewed a new netbook from Toshiba this week great battery life and a winning keyboard, among other things. On the Mossberg Solution, Katie Boehret reviewed the Wii MotionPlus remote accessory, an add-on to the Wii remote that includes a gyroscope and allows for more precision and sensitivity in gameplay. Walt responded to readers on Mossberg’s Mailbox, answering emails about buying a new no-frills laptop, switching ISPs and moving contacts emails without too much pain, and discerning the minimum system requirements for Windows 7.

Walt went into a little more detail about Windows 7 on his MossBlog. Unfortunately, he discovered that more detail does not equal more clarity when it comes to a Windows 7 upgrade. At his request, Microsoft sent along a handy chart meant to simplify all aspects of the matter for readers. It is an astoundingly, even comically, complicated document. The company has promised to send a newer, simpler one. Stay tuned.

More next week.

This Weekend Update is particularly exciting because of all the things happening here at All Things Digital. There is, of course, the upcoming D7 Conference, which promises to be more tech-extravaganza fun than a tweet from @sockington (if only half as cute), but this past week has also seen the launch of our very own iPhone app, meaning ATD has gone mobile–smart news for your smartphone (we’re still working out potential taglines).

Like past D: All Things Digital conferences, D7 boasts a great lineup of speakers and industry leaders. This year, the gang that’s all here is full of personality, wit, chutzpah and all that other good stuff that’s sure to make this one of the most interesting and revelatory events yet.

For instance, Microsoft (MSFT) is rumored to be debuting its latest upgrade to its search engine, Kumo, at D7. The conglomerate sorely needs a win here, especially in its losing battle to the ubiquitous Google (GOOG) for market share in search. Search was a big topic in general this week as Kara Swisher liveblogged Yahoo’s (YHOO) “chalk talk” and interviewed one of its speakers, head of Yahoo Labs and Yahoo Search Strategy Prabhakar Raghavan, an exchange in which Kara gets Raghavan to exclaim WOO! for “web of objects.” In addition, Google search bigwigs Larry Page, Eric Schmidt and Marissa Mayer could be found across several universities this week dispensing “be more lazy” speeches to fresh graduates.

This was also the week with the IPO for OpenTable, the online restaurant reservation company being the first in Silicon Valley to go public in a long time. Kara Swisher and John Paczkowski give their takes on the offering.

It was also a week of many faceoffs. Here’s a smattering of those that went tete-a-tete this week:

• Craigslist vs. Henry McMaster. Winner: Craigslist. The online classifieds site retaliated with a lawsuit of its own after the South Carolina Attorney General threatened legal action.
• Microsoft vs. the European Commission: In the latest antitrust case development, Microsoft and the EC have been going head to head over scheduling issues, of all things.
• L’Oréal vs. eBay. Winner: eBay (EBAY). L’Oréal lost its latest lawsuit against the Web auctioneer over trademark-infringing cosmetic products sold on the site.
• CollegeHumor vs. Amazon: More of a prank than a bout, CollegeHumor gamed Amazon’s (AMZN) system by artificially driving up sales of the Three Wolf Moon T-shirts, complete with outlandishly positive product reviews.
• Comcast vs. Disney: Though Comcast (CMSCA) wasn’t pleased with Disney’s (DIS) partnership with online video site Hulu, the two companies were able to put aside their differences to form an ESPN360 pact.

More next weekend, but in the meantime, look out for all our coverage of D7!

Welcome back to Weekend Update, where we showcase some of the highlights from this site over the past week.

In the umpteenth round of the old media versus new media match, the Associated Press in its annual meeting this week played into the stereotype of the grizzled no-nonsense editor who shakes his fist at the new interweb thing (or was it intertube?) and its feisty friend Google News, who are running amok on his lawn. In addition to trying to “protect news content from misappropriation,” AP board chairman and MediaNews group CEO Dean Singleton emphasized that print was the “meat,” while online was merely the “salt and pepper.” Unimpressed, BoomTown thought Singleton was singling out the steak while missing the sizzle.

In response, Google (GOOG), or He Who Was Not Named, posted a polite, if rather ambiguous, statement on its public policy blog, which was just begging for translation. Also doing some interpreting of his own, AP executive Jim Kennedy spoke with MediaMemo on just what all the fire and brimstone was about. In quieter newspaper-related news, The Wall Street Journal continues on its quest to spread pay content online, possibly through niche content, according to WSJ.com Executive Editor Alan Murray. Also experimenting online is the recently opened news Web site, True/Slant, a heady combination of journalism, social networking and advertising.

Another news item that’s gotten people talking is the fallout from the collapsed IBM-Sun merger, aka Sun pulls a Jerry Yang. (Oh Jerry, the Internet kids because it loves… loves to kid! Pwn-age.) Following the news of the collapse, Sun (JAVA) shares dropped more than 27 percent, leading analysts and Digital Daily to predict difficult times ahead for the company, here and later here as the stock continued its fall over the week. Besides quashing its own stock price, Sun also quashed rumors that chairman and co-founder Scott McNealy would replace CEO Jonathan Schwartz.

Other nonthematic highlights this week:

BoomTown got the exclusive on the anticipated talks between Yahoo’s (YHOO) Carol Bartz and Microsoft’s (MSFT) Steve Ballmer in which the two CEOs discussed the possibility of a search and advertising partnership. Speaking of exclusivity, Google and Microsoft like totally want to be Twitter’s new bff, or maybe go steady if Twitter’s interested.

Digital Daily ruminated on speculations of Time Warner (TWX) doing an AOL spinoff, especially after its hire of former Google exec Tim Armstrong and its attempts to amend debt agreements as per an SEC filing. Also in the rumor mill: The iPhone 3.0 may support onboard video editing. Less of a rumor and more of a slap in the face, to Apple (AAPL) at least: Elan Microelectronics has taken off the gloves (and taken up the lawsuit) because it believes that Apple’s products infringe on its touchscreen patents.

MediaMemo goes over the facts about Vevo, the new online music video hub that’s a partnership between Google’s YouTube and Vivendi’s Universal Music Group, with interesting ramifications for both. Meanwhile, iTunes has put in place its new tiered-pricing system, in which songs will now cost 69 cents, 99 cents, or $1.29. But in a question that shocked no one: Where are the all the lowest-tier songs? Don’t worry your pretty little heads, said Big Music, they’re on their way.

In a new Mossblog, Walt Mossberg reports from the battlefield of the growing Smartphone Wars, in which iPhones, BlackBerries and others are engaged in mortal combat. In the Mossberg Solution, Katherine Boehret reviews BumpTop, an application that takes your flat, plain old X-Y plane of a desktop to the next dimension, that is, the third dimension.

More next week!

On the revenue-seeking side, BoomTown’s Twitter Business Plan Count-Up hasn’t yielded any real keepers yet. There is a real contender, though–since Jennifer Aniston so publicly broke up with her boyfriend, John Mayer, on account of his Twitter “addiction,” BoomTown suggests offering “Twitter rehab” for those not willing to lose their relationships just yet. Not sure how zoning would work on that one, but the profit margin could be nice. The Guardian’s Changing Media Summit in London didn’t provide a lot of hard answers to the revenue question either, but it did gather the curious together to discuss the matter further, ponder the Next Big Thing, and talk about what the media company of tomorrow looks like. And, perhaps proving that during hard times Americans love an unlikely hero (a Seabiscuit for our own economic disaster?), Steve Wozniak escaped elimination from “Dancing With The Stars” for yet another week–undoubtedly due to the will of the people and their appreciation of his determined and goodhearted willingness to look silly on national television. The Pillsbury Doughboy bit probably didn’t hurt, either.

On the cost-saving side, MediaMemo wrote about job and salary cuts at the New York Times (NYT). The job cuts were on the business side, but the company slashed all of its nonunion salaries by 2.5-5 percent. It will ask for similar cuts from its unionized newsroom employees, in a spirit of “shared sacrifice.” Google (GOOG) sacrificed 200 more jobs, this time from sales. One of the most drastic signs of recession, however, may be the fact that Condé Nast’s higher echelons are cutting back on chauffeured cars to get them around Manhattan.

According to Digital Daily, It was Black Thursday at IBM (IBM) on the 26th, with 1,674 job losses (and counting). 5,000 jobs are expected to be cut overall, with many of the lost U.S. positions being transferred offshore. Better news over at Viacom’s (VIA) MTV games–according to new statistics, the company’s Rock Band franchise recently surpassed $1 billion in North American retail sales, making it the number one title of 2008 across all genres, based on revenue. And that’s before Beatles: Rock Band even comes close to shipping. That’s the kind of magic shown so far by Palm’s (PALM) forthcoming Pre handset, which–without a price or a release date–has boosted the company’s share price more than $7 based on little more than a CES debut and some enthusiastic analysts. Digital Daily noted that not everyone feels magical, but the launch will tell.

Over in Personal Technology, Walt Mossberg offered quick reviews of the iPhone apps he uses most often and that make the shiny Apple (AAPL) gadget worth the price. In Mossberg’s Mailbox, Walt pointed out the usefulness of IE8’s compatibility button, which makes the browser act like IE7 in certain instances, on Web sites that were coded around the peccadilloes of the earlier versions of the Microsoft (MSFT) software. Other readers had questions about ordering broadband service without a land line and burning movies to Blu-ray discs using an iMac. Katie Boehret spent the week testing out a new TV from Samsung–the first to integrate with the Yahoo (YHOO) Widget Engine, which enables viewers to watch shows and access the Web on the same large screen. Her thoughts are in The Mossberg Solution.

More next week.

For instance, BoomTown was in Rome earlier this week attending a conference on business, brand and innovation that happens only once every seven years–and one of the biggest takeaways? Hardly any Italians have heard of Twitter, and those who have don’t really use it. Well, that, and conversations with Arianna Huffington, Reid Hoffman, and several Italian business leaders. Mark Zuckerberg, though, is most definitely plugged into the white-hot microblogging service. This week, he used his Twitter account, plus an appearance on “Oprah,” as a platform to herald the launch of Facebook’s own Twitteresque homepage redesign. In other news, Time Warner (TWX) CEO Jeff Bewkes laid off AOL President and COO Ron Grant and Chairman and CEO Randy Falco. BoomTown interviewed Falco’s replacement, Google (GOOG) ad sales exec Tim Armstrong, who’ll start at AOL as Chairman and CEO on April 7.

MediaMemo had the full memo from Time Warner on the Falco/Grant-Armstrong transition and also spoke with Boxee CEO Avner Ronen this week. Boxee is the start-up that lets you watch Web video on your TV, basically bypassing your cable box. Which is probably why it’s caught up in a cat-and-mouse game with Hulu, the joint venture between GE’s (GE) NBC and News Corp.’s (NWS) Fox that would much rather have you watch TV on the Internet instead. Guess who’s the mouse? Still, Hulu is down two networks, ABC and CBS (CBS)–though presumably, the aim is to offer all three. (News Corp. is the owner of Dow Jones, which owns this Web site.) MediaMemo also noted that Google rolled out its behavioral targeting functionality this week and points out that we all might be hearing a lot more from a man named Rick Boucher in the near future as a result.

Behavioral targeting wasn’t the only thing that Google rolled out this week–it also launched Google Voice, the initiative based on the company’s acquisition of voice communications start-up GrandCentral. Digital Daily covered the story. Elsewhere in the telecom world, major Palm (PALM) investor Roger McNamee made some bold (read: crazy) assertions about iPhone users switching en masse to the Pre, which later needed to be clarified (read: backed away from) by Palm itself. RBC analyst Mike Abramsky is also bullish on the Pre and its WebOS, but in a less crazy way. He gave it a glowing write-up on Friday. For a product that hasn’t yet been given a price or a launch date, it’s certainly building itself some high expectations. Of course, it’ll need to fulfill them to compete with the ever-evolving iPhone, which for which Apple (AAPL) is having a press event Tuesday to announce version 3.0 of the device’s OS.

Walt Mossberg reviewed the new version of Apple’s ever-evolving iPod Shuffle this week, which has the distinction of being the first mp3 player to “speak.” His verdict was in Wednesday’s Personal Technology column. In Mossberg’s Mailbox, Walt answered questions about using a stylus with the iPhone and offered an explanation on how to change Apple’s Safari 4 beta so that it looks and works more like the previous version. And in this week’s Mossberg Solution, Katie Boehret took a look at iSkoot’s Notifier, an app designed to endow basic cellphones with smartphone-like capabilities.

More next week. And beware the Ides of March. Or not.