The inability/unwillingness/indifference to integrating Apple TV into the iCloud platform has left Apple's living-room flank exposed just as competitors are marshaling their forces there.
One of those competitors being, of course, Microsoft. With Kinect, voice-control and motion largely eliminate the UI barriers to television input and with live TV integration coming in the fall, the Xbox360 will take a commanding lead in the living room as an entertainment system, not just a gaming console.
This is not to say Microsoft is unbeatable. Apple has the strategic ability to win content and deal with content providers. The hardware manufacturers like Google. But I think Microsoft has shown that its entertainment business has a cohesive strategy, supported by broad and diverse efforts within the company and partners without.