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selnor1983 said:

What do you guys think? After all its not a games machine, its a media device.

Never. Nada. No chance at all. I've been involved in so called "TV entertainment project" in T-mobile. MS is far to expensive and less willing to adapt to customer (in this case TV Providers). Competition in this market ("Set-top box"/CAS/"media servers" manufacturers) is very strong. TVPs need to have full control on bootloader and broadcast signal access. MS Live! network is so tight and "secure" that 3rd parties have no control at all (it is inconvinient and unacceptable from TVPs stand point).

From the other side - YES it is possible, but don't count on it.