Yes, it is running 4.something...I retired the TV and Bravia stick for a week or so while I finish off the room I'm putting it in, so I can't say the exact version. It also updated to Android 4.2.2. Without a doubt, the Smart Stick doesn't compare to the Fire TV in terms of hardware and video capabilities, however it is surprisingly usable out of the box, i.e. it did not require me sifting through a 160 page thread on XBMC forums or this entire sub-forum on XDA to get things to where it didn't require a large amount of acrobatic routines to enjoy an evening of media. Another interesting feature is that I am strictly running OTA signal through a Homeworx PVR-150 and was able to enable it through the Google TV Prime Time app such that I could utilize its guide feature and enjoy live TV right from within the Google TV environment. Pretty slick.
There are a number of devices out there, each with its on redeeming features but still no ideal one-box solution. I think Sony made a decent attempt with this particular device, however it is limited to only Sony televisions and at a retail price of around $149, it is certainly bested performance-wise by the FTV and other devices. All I can say is that if you have a compatible Bravia TV and can get one of these sticks for a song, I highly recommend it for casual use. I'm going to run mine until root opens up more possibilities on the FTV.