Well, the only way the PS3 can compete with mainstream players is if you also have a powerful computer/laptop to take care of the transcoding part of it. With software such as PS3MediaServer, there is virtually no limit to what you can get your PS3 to play as long as you have a physical, wired connection. It is with the wireless part that you run into issues. I have successfully played 8 GB Blu Ray rips over the network from my laptop to the PS3.
The biggest advantage that the PS3 has over other media players such as Xtreamer is that it presents one solution for both digital content (as in video files) as well as for DVDs, CD's and Blu Ray Discs. Considering this only Popcorn Hour C200 and Dune Prime can truly compete with the PS3.
Of course there is information that the PS3 may not upscale as well as some of the media players available. But I am not sure that there is conclusive information on that. I am quite happy with the upscaling of the PS3 - but that may be because I have not experienced too many other options.
The biggest advantage that the PS3 has over other media players such as Xtreamer is that it presents one solution for both digital content (as in video files) as well as for DVDs, CD's and Blu Ray Discs. Considering this only Popcorn Hour C200 and Dune Prime can truly compete with the PS3.
Of course there is information that the PS3 may not upscale as well as some of the media players available. But I am not sure that there is conclusive information on that. I am quite happy with the upscaling of the PS3 - but that may be because I have not experienced too many other options.