

Many existing apps seem to run well on the Apple TV, which is known to be an iOS device using an A4 processor. When this generation of the Apple TV was released, we noted that Apple may have had plans to incorporate native applications all along. In fact, Jobs said that an Apple TV App Store could launch when the time is right.
This video shows the Apple TV in action, running apps under the custom springboard:
Readers should note that the original iPhone jailbreaks enabled native iOS apps well ahead of Apple's official App Store launch. Lights Off was the first native iOS game, released for jailbroken iPhones in August 2007. The official App Store wouldn't launch for another 10 months.
Article Link: Apple TV Hacked to Run iOS Apps at Full Screen