AV Watch scored an interview with some of the engineers behind the frequent PlayStation 3 updates -- most recently adding BD-Live in 2.20 -- and uncovered details on what's been going on under the hood so far, as well as what to expect in the future. 1080 deinterlacing and DTS-HD MA support are definitely in the works, although no date is given. A possible answer why it's not there yet, is the indication that the just implemented mosquito noise reduction on MPEG-4 AVC videos uses less processing power than the original version of BD player software, which used 100% of resources for DVD upconversion, but now only maxes out on PiP streams with BD-Java running. For best PQ, play your digital files from disc or USB stick instead of DLNA, since they are currently processed differently. Otherwise, we can expect future updates quarterly, and for those beyond the reach of the net, updates are also packed onto discs, like the Resident Evil flick with 2.10 firmware on it. Check out Beyond3D for more highlights and see if all your most burning questions have been answered.
[Via PS3 Fanboy & Beyond3D, thanks Isaac]