Intel's Atom processors have seen great success in netbooks so far, and so they have started being used in low-cost, low-power desktop machines as well. What seems weird is that Intel has specified that an Atom product, in order to be labelled as Atom, must NOT have dual-channel memory or any DVI or HDMI outputs. Perhaps they're concerned that the limited ability of the processor to handle high-def tasks would create some ill-will towards it, and decided to defend the brand by disallowing it. If they had allowed it, an Atom all-in-one motherboard could easily be the basis of a decent media box.
Mokalus of Borg
PS - That's assuming it can keep up with the procesing demands.
PPS - I wouldn't count on that just yet.