I think I know enough to say, of course, it's possible. Now, you need someone to do it. While I think it's a pretty good tablet and it offers some things the Nook Color doesn't, it's not going to be an easy port as there are only 2 Zii labs devices (that I know of) and they are the 730 and the Ziio 7(and 10). Someone with a lot of knowledge has to get engaged and understand this hardware to make that attempt. But, yes, it's possible (I believe).
The differences between 2.2 and 2.3, to me, aren't enough to make it that compelling. What would be compelling would be to speed the thing up and get a few little slick things on it. Have you seen the youtube of the guy who, supposedly, put HTC sense UI on a ziio? That would be a nice addition from the ooh and aah point.
But, the VB 730 with 2.2 runs most everything I've run at it.
If someone goes after it, the most logical path would be a Cyanogenmod port.