Why would you want to watch BD's in ISO format anyway? So you dont have to write them on CD's, but place them just on a portable HDD and hook them up to the player? Are there even any players out there, which can do that?
That was my point, I'm not sure those guys know what ISO's are exactly. You would only keep an ISO in native format so you can either keep it on a harddisk to keep or to burn back to its disc image contents. You wouldn't burn an ISO to a disk to store it as an ISO.
Unless, with this BDP being so full of external storage compatibility (Usb, eSATA), maybe they wanted to do just that, keep the ISO on an external media harddisk, and attach it and have the BDP read it and play. A possibility, and I would stand corrected about understanding the ISO concept, but to put such stipulations as a "deal breaker" on doing such an assbackwards way to play the media seems quite finicky. Most media player software wont read ISOs unless mounted with daemonTools or Gizmo, or Virtual CloneDrive. I don't think any BDP has that capability, seems to really stretch the options list a bit. You might as well just burn the disc, IMO.