I am still hoping windows 8 is powering the xbox going forward just for access to the full app store and the buy once get both places aspect but I don't see them doing it.... as awesome as it would be.
Nope won't happen. The new Windows Kernel (which is powering Win8 and WP8) might power the next Xbox - but considering so far Win8 and WP8 are having two seperate OSes (despite WOA being available and probably compatible with WP8 hardware), I doubt they're going to share Win8 across PCs and Xboxes, I'm presuming it'll be a Windows Kernel-based OS, however.
On top of which, I also don't see Windows 8 (the full thing) coming to Xbox for the simple reason that Microsoft itself would become an OEM Manufacturer - meaning it'll compete with the likes of Dell, HP, MSI, and so on, putting Microsoft in a difficult position, as their latest machine would top anything they could offer - small form factor, playing the latest games (natively on the hardware), as well as internet browsing, metro apps, the works. It could even run MS Office. The only thing other OEMs would have going for it is that they could produce x86 boxes - whereas the Xbox is PPC based (and even that is an assumption).