Apple TV 3.0 is largely as rumored: Adding support for Internet radio, Genius Mixes, iTunes LP and iTunes Extras (bonus clips, interviews, etc.). But it boasts another new feature as well: A redesigned user interface.

Whether the debut of Apple TV 3.0 heralds a hardware refresh of the device itself is anyone’s guess. It is worth noting, though, that there’s been quite a bit of speculation recently that Cupertino is working on an overhauled device that will offer DVR capabilities and support iTunes TV show subscriptions.

As Piper Jaffray analyst Gene Munster wrote back in August: “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).”

According to Munster, “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. 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.”

Sounds sweet, right? And it would be sweeter still if it were to offer App Store support and allow users to control games and other apps via iPhone or iPod touch …

Below, the official Apple (AAPL) release:

Apple Introduces Apple TV 3.0 Software With Redesigned User Interface

Enjoy iTunes Extras, iTunes LP & Genius Mixes on Your HD TV

CUPERTINO, Calif., Oct. 29 — Apple® today introduced new Apple TV® 3.0 software featuring a redesigned main menu that makes navigating your favorite content simpler and faster, and makes enjoying the largest selection of on-demand HD movie rentals and purchases, HD TV shows, music and podcasts from the iTunes® Store even better on your TV. You can now enjoy iTunes Extras and iTunes LP in stunning fullscreen with your Apple TV, as well as listen to Genius Mixes and Internet radio through your home theater system. The new Apple TV software is available immediately free of charge to existing Apple TV owners, and Apple TV with 160GB capacity is available for just $229.

“The new software for Apple TV features a simpler and faster interface that gives you instant access to your favorite content,” said Eddy Cue, Apple’s vice president of Internet Services. “HD movies and HD TV shows from iTunes have been a huge hit with Apple TV customers, and with Apple TV 3.0 they get great new features including iTunes Extras, Genius Mixes and Internet radio.”

The redesigned main menu on Apple TV gives you instant access to your favorite content. Recently rented or purchased movies, as well as other content including TV shows, music, podcasts, photos and YouTube, are accessible directly from the new main menu. The new software also allows Apple TV users to enjoy stunning fullscreen iTunes Extras and iTunes LP, including great new movie titles such as “Star Trek” or classics like “The Wizard of Oz” and albums such as Taylor Swift’s “Fearless (Platinum Edition)” and Jack Johnson’s “En Concert.” iTunes Extras gives movie fans great additional content such as deleted scenes, interviews and interactive galleries. iTunes LP is the next evolution of the music album, delivering a rich, immersive experience for select albums on the iTunes Store by combining beautiful design with expanded visual features like live performance videos, lyrics, artwork, liner notes, interviews, photos, album credits and more.

Now Apple TV users can enjoy Genius Mixes through their home theater system and listen to up to 12 endless mixes of songs that go great together, automatically generated from their iTunes library. Customers can also enjoy Internet radio, allowing them to browse and listen to thousands of Internet radio stations, as well as tag favorite stations to listen to later. Apple TV’s support of HD photos is enhanced with iPhoto Events, which simplifies finding your favorite photos on Apple TV, as well as iPhoto® Faces, which gives access to photos organized by people identified in iPhoto.

Apple TV users have direct access to a catalog of over 8,000 Hollywood films on iTunes including over 2,000 in stunning HD video available for rent or purchase. Users can also choose from a selection of 11 million songs, 10,000 music videos and over 50,000 TV episodes to purchase directly from their Apple TV or browse and enjoy the iTunes Store podcast directory of over 175,000 free video and audio podcasts. Purchases downloaded to Apple TV are automatically synced back to iTunes on the user’s computer for enjoyment on their Mac® or PC or all current generation iPods or iPhones.* iPod touch® or iPhone® users can download the free Remote app from the App Store to control their Apple TV with a simple tap or flick of the finger.

That’s the argument put forth by Piper Jaffray analyst Chris Larsen in a research note to investors Monday. Larsen feels that the cost to Apple (AAPL) of developing a CDMA version of the iPhone for Verizon’s (VZ) network and the subsidies the company might lose by ending its exclusivity deal with AT&T (T) would be a small price to pay for the spike in iPhone sales they would create.

“Although the iPhone is a strong player in the smartphone market, expanding its multi-vendor strategy could allow it to dominate the industry, as it does with the iPod,” Larsen writes. “The U.S. market is the world’s largest smartphone market, but we believe there is a land grab in the U.S. for smartphone share.”

Expanding his argument, Larson adds, “Apple’s exclusivity with AT&T has left the door open for strong competition from competitors, such as Research In Motion’s Blackberries, Palm’s webOS smartphones and Google’s Android operating system on multiple smartphones from OEMs such as Motorola, HTC, Samsung, LG, and others. Making the iPhone available to the other 150+ million subscribers (~2/3s of subscribers) not on AT&T’s network could result in iPod like adoption.”

Keeping the iPhone exclusive–while it might enable Apple to do more innovative things, as COO Tim Cook noted yesterday during the company’s quarterly earnings call–would also give those rival devices and platforms more time to catch up. If Apple really hopes to keep its lead in the U.S. market, it must do away with exclusivity deals, the same way it’s doing away with them abroad.

That’s bad news for AT&T. Because, as I’ve noted here before, a move to nonexclusivity in the U.S. would brutalize the carrier’s subscriber base. Analysts have long said that a material number of AT&T iPhone users would flock to Verizon’s superior network given the chance.

Larsen agrees. “A move to non-exclusivity in the U.S. could have a material impact on the U.S. wireless carriers,” he writes. “AT&T could lose meaningful smartphone share, while we think all the other carriers would gain share. We believe Verizon would be the largest beneficiary of non-exclusivity and the development of a CDMA iPhone.”

Continuing, Larson explains, “With 35% of AT&T’s iPhone sales coming from new customers, we feel it is reasonable to assume the company’s total iPhone sales could decline by 30% or more and that Verizon could pick up the bulk of this lost share (why switch to AT&T for iPhone if you haven’t left by now and the device is now available through your carrier; Verizon’s network quality could be a reason to switch from AT&T).”

In a note to investors today, Oppenheimer analyst Yair Reiner warned that supply-chain issues may have prevented Apple (AAPL) from selling the seven million iPhones consensus estimates have been predicting. “During the iPod event on Sept. 9…Apple implied that ~3.5M phones had been sold with only 21 days left in the quarter,” Reiner wrote. “Subsequent checks showed the iPhone 3GS sold out in many markets. Something was clearly preventing Apple from shipping to demand.”

Apple was able to resolve those issues, but they lasted long enough that Reiner fears consensus estimates implying that the company sold an additional 3.5 million iPhones in the final weeks of the quarter may be a bit too aggressive.

That said, it’s worth noting that Piper Jaffray analyst Gene Munster pointed out the same supply issues in a research note of his own earlier this week and came to a very different conclusion. Munster is calling for iPhone sales of about 7.5 million units in the Sept. quarter.

Who’s right? We’ll find out Monday, when Apple reports earnings.

This time it’s going to be different. That’s because Microsoft (MSFT) is paying to make it so. The company has teamed up with Fox to sponsor a “Family Guy” special built around Windows 7. The show, dubbed “Family Guy Presents: Seth & Alex’s Almost Live Comedy Show,” after creator Seth MacFarlane and voice talent Alex Borstein, will air Sunday, Nov. 8, at 8:30 pm, EST and PST.

The new episode will be free of commercial breaks but presumably rife with “clever” references to Windows. Microsoft agencies Universal McCann and Crispin, Porter and Bogusky, which were tapped to weave the company’s marketing messages into the program, will make sure of that.

“You’ll see us deeply integrated into the content,” Gayle Troberman, general manager of consumer engagement and advertising at Microsoft, told Ad Age. “You’ll hear a lot about how Windows 7 can help you simplify your PC–it’s simple, fast and easy to use.”

Sounds…hysterical.

Incidentally, it’s worth noting that this isn’t the first time MacFarlane has inked an advertising deal with a tech company. He’s currently working with Google (GOOG) on a project called “Seth MacFarlane’s Cavalcade of Cartoon Comedy,” which involves humorous animated shorts with built-in advertisements syndicated through the search giant’s AdSense advertising system.

Last year around this time, Sonos introduced its Controller for iPhone, a free application that essentially turns the device into a remote control for any Sonos system. The software performed nearly all of the tasks of the $399 Sonos remote and drastically lowered the price of entry for the otherwise spendy wireless system.

A year later, Sonos is building on the success of that app, launching an all-in-one wireless music system specifically designed for it. The ZonePlayer S5, as the company calls it, encapsulates Sonos’s multi-component system in a single device that can be controlled by an Apple (AAPL) iPhone, iPod touch or computer.

It’s a sort of iPodless iPod speaker dock or, rather, an iPod speaker dock where the iPod can be carried with you. The S5 can stream music from the iTunes library of any computer or networked hard drive. And with five speakers–two tweeters, two three-inch midrange drivers and one 3.5-inch woofer–and a 5 Class-D digital amplifier, the sound is likely to fill a room pretty well. Priced at $399, the S5 is expected at market on Oct. 27.

Consider these metrics:

Of the teens Piper Jaffray surveyed,

• 15 percent own iPhones (up from eight percent six months ago)
• 22 percent plan to buy an iPhone in the next six months
• 87 percent own iPods (up from 86 percent six months ago)
• 93 percent of the 40 percent who legally purchase music online use iTunes

Music to Apple’s (AAPL) ears, right? “Apple’s dominance in the CE and online music markets is going seemingly unchecked, capped by market saturation for iPod and iTunes usage,” Piper Jaffray analyst Gene Munster writes in his analysis.

“Also, interest in the iPhone remains high…We believe the $99 iPhone 3G has been a meaningful part of share gains in the last six months. Previously, teens were indicating that the plan pricing and handset pricing were too high for them (and their parents) to buy iPhones. The lower pricing appears to have been a catalyst for share gains. Also, the popularity of the App Store and the quality of games available for the iPhone have likely led to the gains among the teen demographic in recent months.”

Munster’s conclusion: “Apple is taking its leading position in music and mobile markets.”

According to the research outfit, Mac sales for July and August are up seven percent year-over-year. If this proves true, Apple (AAPL) should sell somewhere around 2.75 and 2.8 million Macs in the quarter, which would match or slightly exceed Wall Street consensus estimates. IPod sales should meet estimates as well, though NPD reports that year-over-year sales during July and August were down 16 percent.

Munster figures Apple will sell 9.5 million to 10.5 million iPods for the quarter. The Street is looking for 10 million, and with the launch of the newest nano, Apple will likely meet this goal.

“We are expecting reacceleration in the final month of the quarter given the new iPod nanos that shipped on 9/9,” Munster explained. “Also, iPod international is growing faster than domestic. In other words, we believe the actual reported numbers for iPod will be slightly better than NPD would suggest.”

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.

Reached for comment this afternoon, Kerris had nothing much else to add beyond that first statement: “Yes, as we’ve said before, newer versions of Apple’s iTunes software may no longer provide syncing functionality with unsupported digital media players.”

Palm (PALM), of course, re-enabled the synching feature a few weeks later with a point release to its webOS. It will come as no surprise if the company does the same this time. And the two companies will go round and round until someone gets tired or the lawyers are called in.

UPDATE: Palm has confirmed to me that iTunes 9 does indeed break WebOS media sync. The company had no further comment on the issue, beyond the ones it gave me in July.

Palm’s media sync works with iTunes 8.2. If Apple chooses to disable media sync in iTunes, it will be a direct blow to their users who will be deprived of a seamless synchronization experience. However, people will have options. They can stay with the iTunes version that works to sync their music on their Pre, they can transfer the music via USB, and there are other third-party applications we can consider.

Palm believes that openness and interoperability offer better experiences for users by allowing them the freedom to use the content they own without interference across devices and services, so on behalf of consumers, we have notified the USB Implementers Forum of what we believe is improper use of the Vendor ID number by another member.

Apple has sold some 225 million iPods to date, making it one of the most popular electronic devices ever. And it’s sure to sell even more after the updates the company announced at this morning’s event. Among them: Larger, cheaper iPod touches and nanos with cameras and FM radios.

Following introductory remarks by Apple (AAPL) CEO Steve Jobs, Phil Schiller offers details, noting that “the iPod has 73.8 percent market share. The next biggest category is ‘other,’ and after that, SanDisk and then Microsoft pulling up the rear.”

Schiller adds that Apple has sold 20 million iPod touches since the device debuted. He runs through a lengthy sales pitch for the iPod touch, touting it as a killer pocket computer and taking potshots at rivals like Dell (DELL) along the way.

Moving on to games, Schiller notes the discrepancy between the number of games on gaming platforms like the Nintendo DS and the iPod touch. The iPhone OS, he notes, has 21,178 games. The DS has just 3,680. Point taken.

Moving on to some new game demos now. First up: Ubisoft with Assassin’s Creed 2, which, we are told, is “all about visceral combat, brutal hand-to-hand combat and one-shot kills.” Behind the presenter, a warrior is mercilessly beaten into submission.

Schiller returns to the stage, “Boy, that looks like fun.”

Tapulous, the developer of Tap Tap Revenge, and Gameloft, follow, both introducing new games. Gameloft’s Nova–a first-person shooter with multiplayer option–seems a far more compelling effort than Tapulous’s Riddim Ribbon, which appears to be a Black Eyed Peas-heavy variation of Tap-Tap.

Up next, Electronic Arts, which is apparently headlining the games section of today’s event. EA’s Travis Boatman takes the stage to introduce Madden NFL 10. The game boasts both custom-kick and draw-a-play-on-screen features developed specifically for the iPhone OS. Madden NFL 10 is available today.

Schiller again returns to the stage. “The iPod touch is the most affordable gateway to the App Store,” he says, adding that $199 is a “magic price point” in the iPod market.

With that, he announces the iPod touch price cuts we heard about earlier this morning: An 8GB model for $199, 32GB for $299, and 64GB for $399. All three devices are significantly faster, says Schiller. Interestingly, none seem to feature that rumored camera.

Price drops as well for the nano, but we knew about these. Apple has dropped the price of the iPod shuffle as well: $59 and $79. And the company is offering them in a new selection of colors. Plus, there’s a special edition of the shuffle crafted from stainless steel.

Steve Jobs returns to the stage. So those are the iPods, but there is one more thing: A video camera. He talks about the exploding video market, mentions the Flip, etc. “We want to get in on this market as well and we’re doing it for free….Boy, this really is the new Apple,” he quips.

Yes, the iPod nano does indeed now feature a video camera. The video quality looks impressive. Whoa: Apple has also added FM radio, a voice recorder and a pedometer to the nano. New polished anodized aluminum colors. 8GB model for $149, 16GB model for $179.

After a few concluding remarks about the new iPod lineup, Jobs announces what has become an annual tradition at these events: A live performance. Today’s artist: Norah Jones.

The end of her set concludes today’s event. No iPlatform. No Beatles on iTunes. But lots of product refreshes, software intros, and price cuts. Plus: Steve Jobs is definitely back.

Live from Apple’s “Let’s Rock” Event

• iPod Updates, Games, Nano Video Cameras
• iTunes 9, iTunes LP, Home Sharing, Genius Mixes
• Steve Jobs: “I’m Vertical, Back at Apple and Loving Every Day of It”
• Event Photos by Adam Tow