MacRumors has a story today about two iOS developers, Steven Troughton-Smith and TheMudKip, who have succeeded in hacking a second generation Apple TV so that it can display iOS apps at full resolution. According to MacRumors, the pair managed to achieve this with a custom Springboard (Home Screen) which TheMudKip wrote on an Apple TV that had been jailbroken. In the video above, you can see how this all works, with apps running on the Apple TV under the custom springboard. MacRumors points out that this hack is not available to the general public yet, although it may well be in future, and hopefully it might then prompt Apple to allow apps to be developed specifically for Apple TV. In fact, as MacRumors notes, Steve Jobs once said that Apple might one day launch an app store specifically for Apple TV, which is actually thought to be an iOS device running on an A4 chip.
Source: Apple TV Hacked to Run iOS Apps at Full Screen - Mac Rumors