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The TiVo assumes you're not watching anything if you don't press any of the remote buttons in a certain amount of time as well.

Right, someone else here told be that timeout was 30 minutes. So, let's say that just got done watching West Wing, having paused or channel flipped or otherwise done stuff during the latter part of the show.

Now let's say I leave the Tivo on and turn off only the TV. On a different channel, in just a few minutes, a mega-awesome show is coming on that I didn't know was going to be on, but that the Tivo thinks I might like. Since I didn't turn off the Tivo, and I was using the remote just a few minutes ago, it won't change the channel to record the mega-awesome show. Whereas if I'd put the Tivo to sleep, then it would record that show without a problem.
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Tony Fabris