Digital TV will come via a digital network (like internet). Networks are two-way by their nature. Ie TIVO is two-way.
Digital cameras can be made very small - just take apart a webcam to see how small the actual sensor is. It'd be trivial to hide it amongst the (fairly large) pixels of an LCD flatscreen TV. It'd be part of the design of the screen, can be mass produced just as easily.
As to the govt wanting to have digital TV introduced, i'm pretty sure i have the press release stored somewhere but i have trouble finding it. A quick google turned this up:
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the FCC has a website promoting digital TV
http://dtv.gov/Analog TV shutdown all but set for 2009
Posted Feb 2nd 2006 10:22AM by Marc Perton
Filed under: HDTV, Home Entertainment
http://www.engadget.com/2006/02/02/analog-tv-shutdown-all-but-set-for-2009/Mark your calendar for February 17, 2009. That's the date set by Congress, as part of a sweeping budget-cutting bill, that broadcasters will be mandated to shut down their analog broadcasts (both the Senate and broadcasters had previously agreed to the date, so the bill now only awaits the President's signature to become law). However, if you can't bear to part with that old Philco or Admiral, you won't have to toss it. The government will be setting aside $1.5 billion in subsidies to help consumers get converters to allow older analog sets to receive digital broadcasts. And, no, you can't request a piece of that to pick up a 60-inch plasma, so don't even think about it.
February 16, 2005 | Paul Thurrott , Keith Furman | Getting Connected
Government Pushes Digital TV Migration
http://www.connectedhomemedia.com/Articles/Print.cfm?ArticleID=45438&Path=VisualPresident George W. Bush's most recent budget proposal included a new plan that could help speed the transition of TV broadcasts from analog to digital, but the plan won't find many fans among broadcasters. Bush is proposing that, beginning in 2007, broadcasters pay a $500 million fee for the privilege of using analog TV signals. When Congress planned the digital broadcast migration in 1997, it enacted legislation that required broadcasters to switch their TV signals from analog to digital by the end of the 2006 or when 85 percent of American TV viewers could receive digital signals--whichever comes later. The transition has been slow; many broadcasts are dragging their feet and say that the 85 percent number is an unreachable goal. The new plan is designed to jump-start the industry into a realistic and aggressive transition, as well as help fill government budget deficits. The government hopes to auction the valuable frequencies that analog TV currently uses for other telecommunication applications, such as high-speed wireless Internet. The auction is projected to raise as much as $100 billion. The broadcasting industry has a lot of powerful political support, so don't expect it to give up without a fight. Let's hope the possibility of a large fee will get the ball rolling more quickly.
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Whichever the case may be, it looks like this won't be left to "market forces".