There's a lot of incorrect or just false info being presented here as "Fact." Be careful who you listen to.
The WDTV Hub DOES support Native DVD playback, complete with all DVD navigation and menus from ISO or VIDEO_TS folder structure just fine. My collection of 350 DVD ISOs is quite playable.
Can't comment on BD ISO support (other than that Menus are DEFINATELY not supported. But that doesn't necessarily mean an ISO won't play. An ISO is just a collection of files.)
WD's press release says this is (at least initially) a Best Buy Exclusive. So, if you're waiting for Amazon to carry it, you may be waiting months (or never.)
The Media "Streamer" inside Hub version 2.02.16 is based on Twonky version 5.1.9. If TWONKY supports a file, it will stream it, regardless of if the Hub can PLAY it itself. Be advised though that with this version of Twonky, TRANSCODING is DISABLED.
It will only stream media that is on the local storage (or USB, I believe.) It cannot act as a gateway to NETWORK storage.
The fact that the Hub supports Macrovision has absolutely NO BEARING on DVD playback. In fact, the only reason that WOULD cause an issue is if your downstream display did NOT support Macrovision. At any rate, most DVD Rippers disable the Macrovision Bit anyway, so it's moot. And I've never heard of a Macro-vision protected MKV file, so don't know what that's about.
Macrovision is only ONE form of DRM this box supports (it's the Sigma that does a lot of it) to protect premium content like NetFlix, Blockbuster, etc. The Live+ has the exact same DRM architecture.
>>>>>> There are 1 TB based media player/streamers in market around $129.
Not with this form factor. If form factor isn't important, then there ya go.