Wait. I thought HDTVs were all about watching actual TV. Well, VUDU thinks it’s all about apps and they may be right. VUDU has today made both Picasa and Flickr access possible through LG and Mitsubishi sets with integrated VUDU software.

Yes, this was already available to those of you relying on one of VUDU’s set-top boxes, but some of us like to have everything within the display itself. Pandora streaming is also available on VUDU-fied Mitsubishi panels, but LG has “requested that only free TV and games be available on their devices.”

Most of us thought that after Christmas those promotional prices would change, but instead of prices going back up on the Vudu set-top-box, the retail price is now permanently reduced by 50%. You can get a box for $149 (previously $299).

The VUDU XL is also down by half, dropping from $999 to $499, which includes a home theater connectivity software package. Even the VUDU XL2 is getting in on the action, dropping from $1,299 to $799. So, are you gonna buy one now?

Most devices come with wireless capabilities, whereas the Vudu broadband video-on-demand box requires an Ethernet connection. As of today, that’s no longer the case as a wireless option is available for Vudu. The Vudu Wireless Kit is a pair of transceivers that creates an 802.11g wireless connection between the Vudu and your broadband router.

Those who already own Vudu can get the kit for $79. The other option, for new customers, is to buy the Vudu Wireless Kit bundle for a price of $349. It’s what many have been waiting for, but we’d like to see it at a slightly lower price.

It just keeps getting better for consumers looking for on-demand set top boxes. In response to the new firmware upgrade and price drop announced by Jobs for the Apple TV, Vudu has given its own demand box a 25 percent discount. This brings the price of the Vudu system down to $295 from $399.

Apple recently discounted the Apple TV with prices as low as $229 for the 40GB model and they’ve also are scheduled to move into a space where Vudu had an upper hand - movie downloads without a PC. Apple TV not only is going to match that point of service but can also bring in YouTube videos AND content from your computer into your living room, which Vudu cannot.

A new set top brick…er, we mean box, is now available for sale today. VUDU, with lots and lots of movies to rent and download, is priced at around $400 for the box plus one-time rental fees ranging from $0.99 - $3.99 and prices for purchased movies ranging from $4.99 - $19.99.

The VUDU is designed to be connected to a high speed broadband connection at home so you can enjoy your choice of more than 5,000 titles from every major U.S. film studio and more than 20 independent and international film distributors. This box lets you watch movies instantly by streaming them for viewing as they are downloaded and stores the movies you rent or buy. It’s also equipped with HDMI outputs for connecting to a HDTV.