While it's still a surprise even for astute fans, the setup does look to work in theory. After all, the console-only Deathspank followed a similar formula last summer and did fairly well, so the the once-proven concept applying itself to other loot-heavy games is hardly a shock.
Torchlight will be part of XBLA's "House Party" event of game releases--perhaps a reaction to the popular Indie Winter Uprising we saw recently as a method of delivering quality titles. While the idea of a house party based on gaming would imply that these release must needs be multiplayer, no such feature has been announced for the port of Torchlight.
On the upside, we'll be looking at new quests, items, sets, and even a new pet (or a new pet food?), so the extra purchase will include some new goodies even without a second player. The movelist has also been tweaked to allow triggers and face buttons in lieu of hotkeys, so the gameplay has likely found a safe home on consoles.
"House Party" on XBLA begins on February 18, and will include some other titles of note. We'll keep you posted on possible deals and release dates as they happen!