I mostly agree with your verdict. I've only used it as a media player via the usb port. The picture quality is good, and there's support for a good range of codecs and external subtitle files - but the stutter in horizontal panning shots is the worse of any player I've looked at, and really lets it down. Once you know it's there you start to notice the choppy effect in less demanding scenes too.
I'm still looking for a media player that does the job. The Sony BDPS185B was close, but no support for external subtitle files.