It seems to me that Cablevision makes excellent points why it should be allowed to build a remote DVR service, provided that they agree to not affect the content being recorded. This centralized approach would allow the sharing of video content more easily among the customer devices - cable box, pc, and perhaps other mobile devices. This centralized server would also be useful for other in home applications like security cameras, baby cams, remote viewing capability, etc.
And should a live event, like say the American Idol finale go over its time, a centralized system could easily capture the added time without the hassle that this year's finale caused to all DVR users, a missed ending. And beyond TV viewing, a centralized server approach might just simplify the communication of a home pc to its home cable box, allowing home videos, photos, music and other files to be accessed and shared more simply. Perhaps consumers would pay extra for that fexibility.
Digital rights management, content control, and application are important issues to consider. Perhaps content and cable companies can find contractual opportunities to authorize such arrangements as well. It may just prove additionally profitable to all parties as well.