Though I guess it's open to discussion, if everyone finds it confusing.

I happen to like the way it works right now. I think its current behavior is correct.

The only thing I would add, to avoid confusion, would be, after the menu selection, to flash the same box that you get when you hit 0 on the remote (the Shuflle on and Shuffle off boxes).

After the first on/off usage, the user "gets" it and realizes the convenience of the menu selection.

The point about how the Source menus doesn't behave this way and should, is well-taken. I agree.