If the email above is really from Steve Jobs (after all, he often answers his email), it looks like AirPlay should be getting two highly-desired features sometime in 2011.
One would be the ability to stream Mobile Safari to Apple TV, and the other would be support for third-party Apps. That means you'd be able to play Cut the Rope on the big screen with Apple TV.
Still, it was almost a sure answer given the ability to change the functionality with a single line of code. They are definitely looking to take over the living room.