I like what Yahoo has done also, but unfortunately my impression so far based on TVs using ARM processors is that the response time is too slow to consider it "interactive" TV. Hopefully that's something that will improve when it's available on Intel Atom-based platforms.
In the meantime, I think it's more accurate to think of it as a portal to online content. That is, I think people will interact with it only enough to get access to some content they want to watch, and then will let it stream the content. So I think the widgets that provide video on demand, like Amazon and Netflix, will be the most popular out of what's currently available.
That perception runs contrary to Yahoo's stated goals, so I think there's a risk that widget providers that don't recognize this will fill the library with widgets that people at most play with once or twice, and then delete. Too many of those will make the platform seem like a novelty to be ignored, rather than something useful. An example along these lines would be the CBS widget. When I first saw it, I was happy because I thought it would provide access to stream full episodes, just like on the website. Instead, it's basically access to commercials about CBS shows. It might be worth playing with if it responded instantly, but the click-wait-click-wait process had me tired before I got to anything worthwhile. I predict that it will be a frequently deleted widget (sorry to say it, CBS developers, if you're reading.) I further predict that most people will have a tolerance level of no more than about 3 quick-to-delete widgets before they start ignoring the whole Yahoo Connected TV feature.
What can counter that is a killer app. The most likely candidates are Amazon and Netflix, as I mentioned. CBS could make that list too, if they just added full episodes to their content. If Joost, or Hulu, or other content providers also joined the fray, it would go a long way to making Yahoo Connected TV relevant.
I worry that the 'toe in the water' approach on high-end TVs only, using slower processors, may undermine a launch of a more responsive version later. By then, it may have already been written off by users.
I wish I could be more enthusiastic about it, because I would like to see the tech do well, but I feel that there are some serious challenges facing Yahoo Connected TV.