Israeli start-up Boxee TV won the Last Gadget Standing competition at the Consumer Electronics Show (CES) in Las Vegas earlier this month.

The list of gadgets was narrowed down to 25, then to a Top Ten, with Boxee being declared best gadget based on the length and volume of audience applause.

The Internet software company beat out Motorola’s Droid phone with its Android operating system and the Que Pro Reader touch screen device.

Boxee provides free software that it says is so simple that “even a zebra can use it” to “watch stuff from your computer on TV.”

Boxee lets you bring movies, TV shows, videos, music and photos from the Internet and your hard drive into an interface that’s optimized for TVs and remotes. It includes social networking options as well and can be installed in Windows, Mac and Lynux.

The Internet software company has its development center in Tel Aviv. The Boxee device was designed by Korean company D-Link, which also designed Microsoft Corp.’s Xbox 360.

It will be available in the second half of 2010 and is expected to cost $200.

ISRAEL21c has compiled its own list of the Top Ten gadgets emanating from Israel in 2009.