While it's idiotic not to support divx everywhere, I've removed that feature from my "deal breaker" list.
For one thing, my divx library is all 852x480, and about 3GB per movie. So that won't work on a FAT formatted drive anyway. Also, it's a waste of space to have the videos in the same quality for watching on a 42" screen, for watching on a 7" screen. I'm going to have to reencode everything to shrink it down, so no big deal to put it in mpeg4 I guess.