Nope not a dvr.
It is similar to other boxes like Apple TV, Roku etc. in that you have Netflix, Amazon VOD, YouTube and Napster. Google TV also includes the Chrome browser so you can surf the net with flash although it isn't the quickest thing. I tried a flash game on Facebook for my grand daughter and it worked but it was pretty slow.
It also interacts with my Directv receiver in that I can pull up Google TV and see what's on now on Directv, the new update is suppose to improve upon that and also searching across Directv, the internet, Netflix etc.
Also it has picture in picture so you can be using Chrome to surf while the tv is still playing in a window in the corner of the screen or even have Netflix on with the tv in the corner, the new update is supposed to add more picture in picture functionality to more apps.
Here's a video showing off the update