i could convert mkv to avchd but some large files (mostly 1080p) don't want to convert at all and with the new firmware update 720p movies get the image cropped at the top right 1/4th of the screen upon playback.
I'm sick of hearing about XBMC... these are still early days as far as homebrew media players for PS3s, they will get better.
I agree with you - however, it depends on how it is referenced. 'When will we get XBMC?' is pretty annoying, and I'd rather have a native PS3 app just like this. Just keep in mind the standard it set for homebrew multimedia playback and management.