The Apple TV has been hacked. You can now run the full mac OSX on it, plus enable USB and add functionality to frontrow You can even enable SSH.
But what is making this whole thing amazing is the fact that Apple doesn't care. I mean there have been a lot of smart and dumb moves in terms of hacking hardware, and this is definitely one of the smarter ones. I feel that this device may flop, but still it has potential.
And while this is all very cool, what is the best news is that companies are starting to release unencrypted versions of their songs on the iTunes music store. Possible in a response to Steve Jobs letter proclaiming the DRM music was the reason for low sales of music. I am really excited for this, because the more open standards, the more chances we have.