That is correct: BDMV is no longer supported on hard drives.
There is a work-around that still functions: it involves tagging the BDMV folder so it appears to be AVCHD, which still works if properly treated.
Search this thread for bdmv_modify_v1.4.zip for a link and instructions.
For those of you, like me, who are running on OSX(mac), this file doesn't work on OSX. You have to do this conversion on a Windows machine.
If anyone is aware of a OSX version of this file, please speak up!