In the past I've taken an "over my dead body" stance on HW extenders; but as I explore the HD200's (Sage's extender device) feature set I have to admit being tempted.
It's old news that it will play everything (mkv, m2ts, avi, etc), and Sage recently added BDMV (Blue ray's VIDEO_TS) support; which is very slick (too bad it's not HDMI 1.3). But I didn't know that it can output content at its native resolution (480i -> 480i, 1080i -> 1080i) letting you leverage a better video processor in the AVR or TV.
If they ever add the ability to execute arbitrary code (it is Linux based afterall), I may have to find a recipe for crow :)