So do you play your dvd's through your PS3 using PS3 media server fully ripped
Yeah, I don't do it much but I can!
I find transcoding to a new format is a pain and takes a lot of time. More importantly, it typically doesn't look as good as the original rip so why bother when an GB of space costs next to nothing? In fact, I used to keep the original and the transcoded version so it actually used up more space!
I have PS3 side by side with my ATV. Both have strengths and weakness but I find I use the ATV a lot more. I use ATV exclusively for music and YouTube. PS3 with PS3 media server for photos. Video is a mixed bag.