It probably can, and is probably how they intend to do it. But Android is too clunky on a TV. It's not designed to be navigated on a TV with direction arrows to move around. I have a Vizio Co-Star Google TV and thing it's horribly designed and laggy. Android might be fun to play around with, but after that I don't see it being practical or user friendly unless they put a ton of work into a custom UI for it. XBMC works great for the things it's supposed to do, which is to play movies, music, ect. And it's pure linux, not linux with sandboxed VM's like android is, so it can probably be more efficient.