Though the Apple rumor mill is always a fickle beast that’s more often wrong than not, when rumors from a variety of sources start to come together, you can be assured there’s something behind it. Now that we’ve been hearing about a revamped AppleTV – dubbed iTV – for some months now, it seems safe to say that something is coming down the pipes. Most people seem to agree that iTV will be smaller than the AppleTV, come in at a low price like $99, and run some form of iOS. Most recently, it was Kevin Rose of Digg fame who provided the newest burst of speculation, and what his sources tell him seems to line up with…

Digg founder Kevin Rose has had varying degrees of success when it comes to Apple rumors. As a tech industry insider, it’s reasonable to assume he’ll hear the odd tidbit on the grapevine here and there. Yesterday the enigmatic entrepreneur spoke out about Apple’s much-rumored iTV project, offering some predictions but also making some forecasts about the effect iTV will have on cable TV and the entertainment industry in general. The box will be $99, and the preferred method of interaction will be the iPad. The device will run iOS, and as such will offer content providers access to iAds. Rose even…