Try not to look at it just as an Android gaming console.
Really, for $100 you're actually paying for a dev kit that you're free to do anything with.

If you want to make additional peripherals to it, go ahead and do so. Want to make it more powerful to support more visually intense games? Go ahead.

OUYA is quite a piece of a kit. Initially, I think for indie developers the OUYA is a very cheap investment into making games. For gamers, perhaps you'll have to wait for a couple of years to see if anything good comes out of it.

Once again understand that the system is just on an Android platform. What you do with the kernel is up to you.

Reviews are out and it doesn't seem to be to bright for Ouya at the moment.
Reading complaints from backers, plenty of them are reporting inconsistent build quality on the controller... which is pretty much a deal breaker at this point.

Issues like:

- The front face plate on the controller not being flushed on both sides, some users have them perfect some have them bad.
- Very bad latency which resutls in horrible input lag, something which pretty much defeats the whole point of having a wireless controller in the first place.
- Touchpad not being responsive or over sensitive.

Ouya on its own... well, I'm not saying it is flop but from what I've seen... it is unfinished and unpolished. Yes, $99.. it's cheap, you don't compare it to a $400 console. But a PS2 or a even a Wii Mini has better build quality, so go figure.

Renewing my interest in Ouya again, not for gaming purposes but to use it with XBMC.

So far, so good.

Uhm everything...? I mean, as long as you have the movie that you wanna watch.

Yes, precisely. You can stream from a NAS or over your own network if you want as well.
Streaming online is possible too, just install Netflix.

It's Android, so you can install whatever you want like it is a tablet. Of course there may be compatibility issues here and there so not everything is perfect, but for the most part... it'll be fine.
Furthermore Ouya's development has been pretty rapid, so expect more improvements over the next few months.

Yeah enable HW mode.
You can give VLC a try too, though I generally don't like it.

libstagefright with XBMC is getting better and better, probably need a few more months of refinement. After that, XBMC should be all OUYA owners need for watching movies.

It's basically the XBMC frodo on the OUYA store. It works perfectly fine as long as you watch 720p movies.
I find that any 1080p rips with more than 10mbps on XBMC frodo will cause it to stutter, no matter the encoding techniques used.

But yeah give it a try, no harm done anyways. You can delete it if you want after, it's Android after all.

Which LG TV are you using?

Ah~ the same plasma TV I still have. I'll check and get back to you later.