Yup...my sense is that its the equivalent of a cable box, but for IP services (including the Internet, but not necessarily on the customers' terms as we're used to today, but increasingly on Verizon's terms).  

I don't know if VZ will make the router mandatory for customers, but I'd guess they'll do their best to make it attractive, especially for those not likely to read or care about any fine print in service contracts that might allow them to start exerting some of the potential control the box seems to provide them with.  How about a free on-demand movie every month if you use their box?  Of free installation, but only of their box (and, oh, by the way, we don't "support" other routers if you have any problems with them).

I'm not claiming that this is their plan (I have no idea), only that it's what I'd be thinking about if I was one of their business strategists trying to optimize their gatekeeper business model.

I don't know if the following is enabled by the box, but I'm guessing it could be:

Customers go to an online music store of their preference and the next day they get an email offer from Verizon's "affiliated" music store for some free downloads. Or maybe the offer comes before they even get to their preferred site, with a pop-up that offers "a special today-only deal" on music at VZ's competing service.

Or, you go to a video streaming service that doesn't have a "premium-service" deal with VZ and, before you get there, a pop-up appears saying "Tired of slow video downloads?  Try a free sample of 'VZ-Affiliated Video" today!"

Again, I'm not saying this is what they're planning, or even that the box would definitely support this capability.  Just wondering out loud about what might be possible with a "smart network" router in customers' homes.