A little searching on Boxee's forum
answered my BD ISO question. No support for Blu-Ray ISOs now or planned. I'll play with it for another week or two while I wait for my back-ordered 1.5TB external drives and then more than likely switch back to the WDTV Live. From a "super moderator" on their forum:
"Bluray support probably won't happen due to licensing."
Just in playing with Boxee for 2 days it has a prettier (but no more user friendly) interface then my WDTV Live and Boxee does support a lot more online services. But that's just not something that interests me. I have no desire to watch youtube on a 52" TV. For me a lack of support for BD ISOs is major a deal breaker.
Boxee is also less Logitech Harmony friendly than the WDTV Live. The little Lenovo micro QWERTY keyboard makes up for that to a large degree but not completely. For example even if you get a remote working (no mean feat) you still need a way to navigate into Boxee.
The third thing that bothers me is energy usage. I'll break out the Kill A Watt this week but I suspect that difference will be well over 50% with two drives each. Add in that the remote powers off (and back on) the WD I think the difference will be substantial. Note I'm using an Intel Core 2 Duo with 2GB of RAM, 1x 500GB WD and 1x 1.5GB WD Green. The box has a 350w PS.
Just at first blush I see the Boxee as a solution for an integrator or a techie that wants to devote time to setup all of the features and doesn't care too much about monthly energy costs. I see the WDTV Live as a better plug and play solution for someone that just wants a simple way to play stored (local & local network) media. I'll update my opinions as the experiment continues.