Chromecast: Giving up on the cable/TV industry and going all in on internet video?

I'm not saying that Google TV is a dead product, but it certainly seems like Google is frustrated enough with the cable and TV industry that it would rather cut them out entirely and build this dongle instead of building a crappy set top box (ie a Google TV). I think eventually the TV stuff will be sorted but right now it is still so stagnant with nobody cooperating with the internet companies, which results in IR blasters (htc One, various Samsungs), TVs not running Google TV or something comparable as an OS, and the Xbox One overlaying a freaking cable signal. If this dongle is successful it will pressure the industry.