Overall, the product has potential, but I think Sony goofed up bad in a couple of areas. I mean, what's the real excuse for giving people a free app, but then putting ads inside of it? That's a little insulting to the person who just spent their hard-earned cash on this device. Could you imagine purchasing WD's media player and then use the company's app that had an ad in it? Of course not, because it wouldn't happen. Don't make me eat my words, WD!
I could at least live with the ad-ridden digital remote, but the real problem is the MKV limitation... what on earth is that about? Greg, did you happen to find out an actual reason for that? I almost wonder if it has to do with piracy in any way. A friend of mine streams movies through his PS3 and on occasion gets a warning about a copyright issue, or something, and then the content ceases to play. I am wondering if this limitation is at all similar.
Why would it matter if it were streaming? Well, I think it has to do with the fact that if streaming a high-def movie, the latency and bandwidth throughput are key. If Sony is hand-shaking back and forth to see if the content being viewed is "pirated" or not, then that could harm performance. Whereas if the content is being plugged in, the wireless connection is free.
Of course, it could also just be some performance-related issue. Perhaps there's some overhead with MKV I'm not aware of. I've never successfully streamed a 1080p video before via wireless, so maybe that limitation is no different with MKV here.