Junko, I was thinking much along the same lines as your post: it may take another 2-4 years for the LCD/TV landscape to change, however, I think the convergence of smartphones with consumer electronics devices (of all types) is now nearing a juncture where its finally ready to transform the TV. That will drive more overlap in chips and software.
The 'smart TV chip' business and mobile device chip business are being driven closer together and successful vendors must work to drive functionality across both environments. I've called that the 'seat to the street' experience which focuses on mode of use rather than a particular device definition.
A challenge for Mediatek will be to provide a more unified approach between to the rapidly gowing clone SmartPhone and consumer electronic markets. That will require a greater focus on contributing to a comon software ecosystem.
My understanding is that Mstar has solid TV chip business in China. The reason why MTK wants that TV market segment (beyond their growing
smartphone market) is that those two segments will continue to get interconnected. Look no further than Qualcomm. They too want to get into smart TV chip business.
If MStar folds its handset and wireless business units into MediaTek it will leave it as a subsiduary that only does TV chips. Maybe MediaTek will just give up trying to compete with itself...and be the wireless, smartphone, tablet IC provider.