Definitely the best retro hardware for XBMC
#1
Commodore 64
with Dual Core 525 Atom processor and the Nvidia Ion2 graphics chipset. No need of external keyboards Laugh

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#2
As awesome as that would be, you'd need some sort of wireless power/video/audio/internet hocus pocus. Or some sort of umbilical that you hid under the floor between the TV and the couch.
Asus AT5IONT-I in an A+ CUPID-3 + 2TB Seagate LP + 16GB SSD + Ubuntu + Samba + XBMC

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#3
You are absolutely right. A good installation would require special attention in the arrangement of cables.
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Definitely the best retro hardware for XBMC0