They might be able to refocus on cord-cutters
We had a tivo box in 2007 or so and loved it, then when the hardware died a couple of years ago we dumped them. Now we've suffered with the archaic cable box for too long and the introductory offer for the free box is over, so I picked up a refurbed one this week for $49 plus service.
I'm going to spend the next year trying to get the wife off of cable. Its all complete and total crap except for maybe one or two shows.
I am well aware that I could build my own HTPC that would also have DVR capabilities, but I have other hobbies that are more rewarding for me. It is continually on my wish list of things to do.
The Tivo boxes that can capture over the air signals can offer a pretty good value for a lot of people. I did that a year ago for my parents, and they love it. They get something like 25 channels OTA, and can stream netflix, etc. For them it has been perfect (they're too cheap to go for cable.)
The one thing that seems really retarded in this day and age is that they expect you to buy a separate streaming box AND separate service fees in order to stream out of the box to mobiles, etc in the home or on the internet. So many people go pick up slingboxes that don't need monthly fees. I think they're starting to roll those into their higher-end boxes.