Agreed on both points as well. This will be my 3rd BD player that I've reguarly watched movies on.
The first was a sammy bd up 5000, then after that unit died I had to watch movies on my PS3 for a while, and now i'm onto the 320. And I can say so far that the PQ on the 320 is noticeably sharper and clearer on this unit. Maybe it'd be hard to see the difference if I could go back and get my sammy to work and put them side by side, but I can quite clearly see the difference in PQ from the ps3. It's not as soft as a picture, everything is much sharper and clearer.
Love being able to switch resolutions on the fly, that's cool. Personally I keep it on Auto, because if I kept it on source direct it would play all my SD DVD's in 480i, and i watch alot of old tv shows on dvd. Plus keeping it on auto still plays blu rays at 1080/24.
Upscaling is pretty much the same as the reon was in my sammy. I'm not gonna lie and say it looks better on this new player, it might have looked SLIGHTLY better on the reon, but it's still miles ahead of the PS3 for upscaling, and it's not enough of a noticeable difference (if any, I'm not honestly sure) that it is of any concern. This until will be my standard unit to play all my SD DVD's as well.