Well the flickering now appears to be adjustable. Last night on my E550, pushing contrast from default (movie mode) 95 to 100 and brightness from default 45 to 46 eliminates it. At those adjusted settings, the screen now stays on during the completely black screen overture at the beginning of It's a Mad Mad Mad Mad World (with the default settings the screen would flicker back and forth several times at the very beginning and finally shut off). Likewise, the fade in The Lost Boys between the scene at the beginning of the film where the vampires nab the amusement park security guard in the parking lot and the opening credits now stays on, whereas before it would flicker off and on two or three times. These were the only two things I tested last night before going to bed but I would imagine all fade outs/ins would be the same.
Keeping brightness at 46 and dialing contrast back down to default 95 would re-introduce the flickering. Likewise, keeping contrast at 100 but dialing brightness down one tick to default 45 would again introduce flickering. Pushing brightness beyond 46 introduced minor dithering in letterbox bars and at 49 it was all-out full blown dithering. I did not test contrast between 95 and 100 so I don't know about any of those settings.
The thing is, I don't know if I necessarily like the way the adjusted settings look compared to default movie mode, but I didn't really see any discernible difference on the Disney WOW black and white clipping test other than at contrast 100 the brightest white stars near 255 blended into the background, so maybe it's just in my head (this was around 4 in the morning too so I was pretty tired, lol).