The whole idea of this application is to avoid having to convert your media to be able to play it.
PS3 Media Server is an OK solution if you have a PC fast enough to convert in real-time, but if you have a native player that supports a much wider range of formats, you can cut the conversion out of the picture, and just store your collection directly on the PS3.
This way I can use my PC while someone watches a movie on the PS3 (or just turn my PC off) which is something you can't do with the "PC -> PS3" streaming option.
This also avoids any network limitations, which are pretty obvious if the PC and/or PS3 is connected via wireless.
Not to mention playing movies natively from the PS3 HDD allows for fast/smooth seeking in the video. Try fast-forwarding or rewinding with the streaming method from the PC. You will notice how sluggish and unresponsive it is.
Basically Showtime is the way to go, and PC to PS3 streaming should only be used as a last resort.
Showtime PS3 Media Player Testing Build 3.5.176 Update Arrives
Following the previous revision, today PlayStation 3 developer Andreas Oman has updated Showtime PS3 Media Player Testing Build to version 3.5.176 addressing memory issues with the changes outlined below, as follows: