Sure the Apple TV has nearly everything you can ever want - save for the video games. There is speculation that the Apple TV may be able to support games in the future, though they will likely be bought from the iTunes store or would have to be in a certain format.

Well, some people found a way to hack into Apple's entertainment system and got emulators working on it. Reportedly, there are five available emulators for the Apple TV: Nintendo Entertainment System (NES), Super Nintendo Entertainment System (SNES), Nintendo64, Nintendo Gameboy Advance (GBA), and Sega Genesis. Instructions and the emulators themselves (we suppose the ROMs as well) now litter the interwebs but we shall insert a disclaimer here:

Tampering with the Apple TV might void your warranty, not to mention render the unit useless.

According to the report, hackers are also trying to find a way to work the Xbox360 with the Apple TV and are making progress. The "service only" USB port has been hacked into and so enabling the use of joysticks. Rumors say that in/famous Jon Lech Johansen has gotten hold of an Apple TV. We'll see what comes of that in the future. For now, be careful with those emulators.