Mike;
You're TV is a terminal. So is your telephone. All you need to understand is that when you're using the X protocol your touchscreen display and a network connection (aka your 770) suffice for you to be able to interact with X software. A PC is not required for software any more than the PC is required to watch HD TV or to use a phone, VOIP or POTS (plain old telephone service). Unfortunately, when nobody creates GUIs or applications that make use of this, then it's no surprise that nobody understands this aspect of what X is about. The component called the X Server is actually the equivalent of the TV tuner, the part that makes your TV smart enough to receive and display the programs coming over the network to it. The component called the Client Application is the equivalent of the DVD or the satellite/cable program you're enjoying.

X is multiheaded. The TV equivalent of this is a split screen or a picture-in-picture, except that with X there's no limit to how many apps on how many remote computers can be invoked by the icons on the GUI at one time. The network GUI is a much different animal than the desktop GUI. AGUI built out of network transparent GUI thingys is much different than a desktop GUI built out of GUI thingys that can only monitor or control the one PC on the other end of your display's VGA or DVI cable.

I have 3 teenagers who will keep me busy over the next few days. Stay patient just a little longer, even as I'm waiting for my own 770 to arrive, and soon you'll see some remote apps on your 770.