So far they've sent the same 'spam' to everybody - but lets say they tailor the ad based on shows you've watched - does that get your Tivo into the trash? Is that really worse than what they've done so far - at least if it's tailored to me it might be something I'd actually want.
I think people get a little too bent out of shape on the privacy issue here and miss the opportunity. I don't mind getting targetted spam - it sure beats the heck out of the mass-mailing random stuff I get today. American Express, VISA, and MasterCard have been selling your shopping habits for years - or didn't you notice? Tivo doing the same hardly seems worse.
And finally - perhaps you need to buy yourself a little Tivo stock. That way you can follow the business issues with the company and understand a little more of what they are doing and why. These ads, preselecte recording, and other items are an attempt to find a way to make the company profitable. You know the player sales are a loss-leader, right? Just like game consoles Tivo wants to make its money on the software (in this case guide information instead of games, but the analogy works.) I don't mind advertising because it keeps the medium in business. I sure would hate to see Tivo go under after I've become so addicted to it!
(1) Allot an hour of disk space on each TiVo unit that is not under the user's control. E.g., a 30-hour unit has 31 hours of space, and the extra hour is under TiVo's control.
(2) TiVo makes deals to send programs to all its users (or better, targeted programs), unannounced. This shows up in the Now Playing list with a special notation, or as a system e-mail. (The latter is how they do it now with TiVo-delivered special commercials.)
(3) If the user has his/her TiVo programmed to record something else when the paid TiVo-delivered program is broadcast, the user program overrides. (Most TiVos can only record one program at a time.)
(4) Give TiVo users an incentive for allowing these targeted programs -- like a discount on the service fee they pay ($200 lifetime or $10/month is the current rate, I believe).
(5) Allow users to opt out of this.
With that scenario, TiVo the company and TiVo users benefit.