Yes, updates can be done over ethernet (or disc or USB). Most issues have been resolved, I think. The latest unresolved bug is with netflix skip fwd/back, but there is a workaround by using the arrow keys. IR is much improved although still a little weak. There is also an issue with Ponyo, but it also has a workaround by skipping straight to a chapter to begin playback.
You can get a better idea of the current issues from the insignia forum
. But all players have issues and the causes are many (bugs, bad discs, network/speed problems, operator error, etc.), so you have to take some reports with a grain of salt, unless it appears to really be a widespread problem.
I'm very pleased with my Insignias, considering I paid around $30 for most of them. The real hidden gem is the file playback capabilities that similar players can't even touch. And the netfilx interface is better than most since you can browse many, many categories on the player in addition to your queue.