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It doesn't have the Market app, but for the most part, if it will run on 2.0.1 then yes it can be installed on the Cruz Reader, the Cruz Tablet(s) run:
T10x series = 2.0.1
T30x series = 2.2
T40x series = 2.3
Instead of the Android Market (as it can't make phone calls and has no gps it's not allowed to have that) it has the 'Cruz Market' an encapsulated web page from Velocity Micro, that has other readers available.
Also, strictly speaking, the Cruz readers are nearly rooted out of the box, the only thing needed to finish the job is to add the actual root (su) command executable, due to the manufacturers not having locked anything down.
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