Amidst rumors that have been heating up in recent weeks regarding an iOS-powered Apple TV replacement called iTV, Digg founder Kevin Rose has chimed in with his own thoughts on what he’s heard out of Cupertino.

AppleInsider is reporting that Digg founder Kevin Rose has sounded off on the rumored Apple TV hardware update, which is expected to include new hardware based on the iOS operating system, a new name (iTV, which the box was originally named prior to its actual launch) and a consumer-friendly price point of $99. On his blog, Rose gushes that the new device with “change everything” since iOS apps written for the iPhone, iPod touch and iPad can now run on your television as well. That means the App Store may expand yet again, offering an insane number of options for iTV.

Rose believes that an App Store on an iTV box will essentially change the way people watch content on their television, since it allows “a la carte” choices.

"With Apple's iAds, content producers (eg. ABC/NBC/etc.) can directly monetize and distribute their content," Rose explained. "This will eventually destroy the television side of the cable and satellite industry, as your only requirement to access these on-demand stations will be an internet connection. Say goodbye to your monthly cable bill."

The iOS-driven box will also apparently make it easy for users to share pictures and videos “with the push of a button, even going so far as to “notify users when new family photos or videos are available to be viewed,” according to AppleInsider.

Instead of Apple’s oversimplified remote control included with the previous Apple TV, the new iTV is expected to use the iPad as the “preferred input device” for the new box. That will allow users to edit videos, control games and “extend the interactive television experience.” Rose uses the example of watching a football game while using the iPad to view other camera angles.

Of course, Apple won’t be alone in trying to woo consumers into the living room with their box -- Google TV has already been announced and is launching this fall. “This is going to be a hot space in 2011,” Rose suggests.

Before you dismiss Rose’s predictions as crazy talk, keep in mind that he has a decent track record when it comes to Apple rumors, having leaked a photo of the fourth-generation iPod nano in 2008 prior to its release as well as the addition of copy and paste to iPhone OS 3.0. Rose is expecting the new iTV to be unveiled at next month’s music-centric media event.

Follow this article’s author, J.R. Bookwalter on Twitter