Wow, that's disappointing. I'm sure some of the software limitations will get better over time, but the potential of hardware limitations is definitely a bummer. You knew they weren't going to outfit these devices with high-performance chips, but really, no background playback? My six year-old Linux box running Boxee could handle background playback.

It's starting to sound like the best option for many people is going to continue to be running a Mac Mini or small form-factor Linux box running Boxee. That's kinda sad.