Sorry I took so long posting a reply but I got caught up with work and forgot to check back.
cpg,
The term appliance is generally used in turn key solutions that are simple to install and operate. A simple appliance would be like a DVD player. A DVD player is dedicated to one purpose (playing DVD's). It requires very little installation or configuration from the user. The learning curve to operate it is therefore very small.
>>Is it that is only runs on a VM? Or partner with hardware vendors?
No, all the linux appliances that I am familiar with are either, a combination of Linux OS and custom designed software than can be installed on just about any hardware OR Linux OS and custom designed sofware installed on a pre-configured hardware package.
Partnering with a hardware vendor I guess would be an option similiar to the Boxee appliance. I do believe however, that a better first stage would be to setup only the software side of the appliance. The hardware would be up to the individuals to setup.
An example of this is XBMC Live. If your not familiar with this, XBMC Live is basically a copy of XBMC integrated with a linux distibution that is designed to run from CD or USB stick on just about any hardware configuration. It does not even require installation to a hard drive. Another good example of an appliance is Vortexbox. A commercial example would be Nitix or Lotus Foundations Start.
I also understand that resources are scarce, but just though I would make the suggestion.
mehmetb,
I understand what your saying, but a separate version that includes no OS could still be made available for individuals such as you. An Amahi appliance however, does have advantages. Quicker install, easier updates, and a larger user base.
Although I too like to tinker, there are sometimes when you just want it to work without spending a lot of time.
(BTW, I have refrained from posting links since I'm not sure if it is allowed in the forum?)