Ok, who DOESN'T think that Apple would clean the clocks of Nintendo, Sony and Microsoft if it opened an App store for the AppleTV? Personally, I think Apple's unit sales would shame the other three very very quickly, making Apple the de-facto #1 console shipper in the world.

http://majicjungle.com/chopper2_iphone.html

http://bigbucketsoftware.com/2010/11/09/sneak-peek-at-the-incident-1-3/

The system is most definitely not optimized for state-of-the-art gaming, but then again neither is Nintendo's system - and at least ATV can output 720p. At a price of $99 plus a few bucks for a controller, it might be too sweet a proposition to pass up for a lot of folks. Just get the landscape wet with the current hardware then introduce a more capable platform next year. Plenty of software is already available. They'd clean house.