Hey, everybody wants it and it would be great in a pinch if you have to return a movie to a friend/store and haven't gotten a chance to watch it yet. Adding some functionality to the box is a good thing so Kudos to the WiSo.
As for encoding on the box itself there are way too many moving parts to this very imperfect technology. I've been using Goridan Knot for a while now (6+ programs bundled into one) and I still have issues with A/V synch somtimes for what reason I don't know (like Side A of Ben Hur is perfect and using the exact same settings with AC3 Mux audio isn't working for side B - why? oh well). Very high learning curve. There's just no way this can be done easily on the box and the processor itself is less than decent for this type of work.