Network should be significantly faster then USB 1.1. For example, playing games with an USB HDD gives choppy FMV, but in the meantime using that Mediaplayer for the PS2 gives just fine playback with movies over the network.
So in theory (as it would seem to me) this would be a perfectly workable solution. And I'd rather have a NAS with ISO's of games then having to format a whole harddisk in some proprietary format.
@PS3News.COM: Is there a name for this product or is it secret? Why has it not been released? Is it still in beta testing or do the makers just want to reserve this for the 'l33t' inner circle?