ComCast is releasing a DVR withTiVo software. I've been using Time Warner's DVR service for awhile and I've been pretty happy with it. There are clear advantages from getting the service from your cable provider: namely, no upfront costs, tighter integration (i.e., a single box for cable + DVR), and 2 HDTV tuners.
Time Warner's software isn't as bad as the software I've seen from ComCast and Cablevision, but it's not great. And yet, no matter how good TiVO's software, it is fighting an uphill battle trying to compete with the benefits of a DVR from the cable company.
So, it's good to see them recognize this and partner with the cable providers. I imagine a lot of customers would even be willing to pay an extra dollar or two a month for the "premium" DVR service. Now all we need is a networked DVR.