The Apple Press and Engadget bring us word that the Apple TV, when connected to iTunes via its mini USB port, pops up this "restore this device" dialog that will look very familiar to iPhone, iPod, and iPad users. This is another step forward for would-be Apple TV jailbreakers because it will give end users an easy way to inject custom firmwares onto their own devices without having to do any hardware modification.
So, to summarize: we know it has ample on-board storage for some apps, we know how to decrypt its firmware keys, we've seen the Lowtide interface loaded onto an iPod touch, and we could have a working jailbreak "within days." All this for a device that's been in people's hands for less than 24 hours. It now remains to be seen what a planet's worth of keen hackers and developers can put together for us to play with. Personally, I'm hoping for a port of Boxee and an iPlayer client. What would be your dream Apple TV app?