It now makes sense. Hulu decided to block Boxee clients, because they wanted to replicate and more importantly control the social features. Increased viewing, but only through Hulu, and its contracted partners.

Wait. You mean the people spending the money to put up and manage the Hulu want to control how people use it?

The next thing you know, Apple will insist that only iTunes connects to the iTMS. Or only authorized companies can put applications on its phones. Or make headphones for their new jack.

I'm just noting the reason that Hulu is discriminating against Boxee, but not other browsers of their content. You need a web browser to get to their portal. You can embed their content on another page, and they see a web browser, just like if you visit their portal.

Unliek the iTMS, Hulu is not providing their own browser. Instead, it is relying on whatever browser you have, except if that browser happens to be Boxee.

It isn't that different. Hulu has a service, which, as you stated, they have contracted partners with. Why should they allow Boxee to just come in and take their efforts to use to push their own product?

And you get into concerns over copyright. If they don't go after boxee, what's to stop Apple from putting in hooks directly into the AppleTV. Then they'd be using Hulu to sell the AppleTV, and Hulu gets nothing in return.