Honestly, I don't see that being the only outlet for Hulu... just depending on cable subscriptions only. If anything, they will do what websites like AdultSwim.com have been doing... offering free content still, but adding the whole list of episodes for streaming on demand IF you have a cable account and login. Then, you get all episodes and not just a rotating list of 3 eps a week for public viewing. It'll be there way of making their site "more attractive" than it is now. They will also probably increase ad count and decrease the amount of episodes they offer for free to encourage people to buy.
That seems more likely to happen than just depending on cable providers only. It seems to be the new trend among commericial broadcasting sites too.
General ATV troubleshooting info - http://support.apple.com/kb/HT1551
Use Boxee Browser to check your flash version- enter http://www.adobe.com/software/flash/about/
AppleTV 2 WIP http://wiki.xbmc.org/index.php?title...l_XBMC_on_ATV2
Current ATV installation instructions - http://forums.boxee.tv/showpost.php?...37&postcount=6
last boxee beta - http://dl.dropbox.com/u/60259880/box....15885.dmg.zip
Boxee.app zip - http://dl.dropbox.com/u/60259880/Boxee.zip
I think that's the smart way to go to protect content and still be a player on the web... look at ESPN3 , same concept!