Like .... ?
As for dealing with switching the inputs, many older TVs and computer monitors come with a simple enough mechanism to switch between various inputs. This particular article may be about regression in the UI.
There is nothing "new" Apple can do here. If they end up doing something it will not be not that far off from existing and very functional UIs.
The big thing is the if. Apple isn't going to enter this space to create another "me, too" product. They are only going to enter the space if they can do to TV what the iPhone did to mobile phones.
A lot of people think Jobs' implied that they had figured out the TV interface. I hope so, because I'm with a large majority of others in this thread: current "smart TV" is stupid and completely lacks imagination.
There were some caveats like the keyboard on the remote not working inside some 3rd party apps. that the TV allowed you to install.