Thanks to l.m. orchard, I now know that XBox Media Center is eminently hackable, even having some nice Python based tools onboard. XBox Media Center is an open source media player that runs on top of MicroSoft's XBox. In essence, you get a platform for turning your XBox into a hackable home media player.
This might be the excuse I need to actually get a game console. Also, you could probably hook kids who don't have a lot of money/wherewithal for a desktop (think disadvantaged urban youth), into some programming.