Wouldn't it be 3.0? If you count AppleTV I mean. The article was kind of scant on details, but I would expect Google to learn from the mistakes of previous attempts. A cheap easy-to-use box for streaming Hulu, Youtube, etc. could have some success, especially if they partner with big networks to allow streaming of popular shows (with ads, of course).
Actually, I just found out that there was "MSN TV 2" so it would be 3.0. Apple TV is more of a media player. There is no native browser.
From what I understand, this thing is supposed to be "internet on your TV". I'd be all over a box that could stream Hulu. I wish the Roku could. It's already a great Netflix streaming device plus MLB.tv if you're a subscriber. If this Google TV thing did Hulu though, I'd be highly tempted.