The 2012 LG HTIB systems are now available. The manual lists TS folders as supported via USB. Please provide feedback as to whether these units will play DVD back ups with menu support via USB and overall sound/video quality, bugs, issues, etc.
I bought the LG BP220 BR player and tested a Video TS folder with a USB flash drive. Good news: the player read and played the folder. Bad news: No menu support and it would only play the VOB files in order. There was a slight pause while transitioning to the next VOB, but it was very brief.
I would expect this to be the case on all 2012 LG HTIB systems.