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I jailbroke my 2nd Gen AppleTV and can confirm XBMC works nicely - and you can add different apps to it too. I did the new untethered jailbreak using Seas0nPass, it wasn't to difficult (~30 minutes).

Edit: Oh, and XBMC just gets added as another menu item, so you can still use the regular AppleTV ui too.

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Can you set it up to automatically start with XBMC? How hard/easy is it to upgrade XBMC as new versions come out? Does the AppleTV support a keyboard or some other device (iPhone?) to control ATV?

1. Not that I know of, but it's just two clicks to the right on the home screen - I usually just leave it running all the time, so it isn't much of a problem.

2. No idea. If I had to guess it wouldn't be harder than the original jailbreak, and potentially much easier.

3. You can use your iPhone/iPod touch's Remote app to control the ATV (the remote it comes with is a pain for text input) [No jailbreak required]

Thanks!

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