The cable industry has done a remarkable job building out its networks, offering consumers a service that lets them watch hi-definition television and download Web content at blazing speeds. But as Apple (AAPL) and the iPhone taught the cellphone industry, hardware isn't everything.

Software -- especially the interface that your customers interact with -- is arguably more important. That's where cable giants like Comcast (CMCSA) and Time Warner Cable (TWC) are weak. And potential rivals, such as Apple, Hulu, and Boxee, are strong.

We are surprised by how lousy today's set-top box software is. The user interface has barely changed in ten years. Searching through programs on hundreds of channels (and various on-demand listings) requires an immense amount of patience or muscle memory. And the set-top box shows no signs that it's connected to the same pipe as the Internet.

What needs to happen?

A much better user interface all-around. Clearer and simpler, especially menus.

Browsing shows shouldn't just be a linear channel guide, but a real search experience, that's as visual as text-based.

Get inspired by the iPhone and the Nintendo Wii -- not an old TV Guide magazine. Apps, widgets, motion-sensitive remotes, whatever.

Use the Internet more. Pull in reviews from Rotten Tomatoes, Netflix, and Amazon.

Let subscribers send out the shows they're watching on Twitter. Let us watch what our Facebook friends are watching.

Figure out a way to get every Web video ever on the cable box via On Demand. We shouldn't have to boot up our laptop if we want to watch YouTube, MTV music videos, or our favorite video podcast.