MoboPlayer seems to have 16:9 and 4:3 stretch/squish modes now. Yay, I don't have to resize 720x480 NTSC.... Still lotta devices finicky about container if you want HW decode of H.264, and it's definitely one of those "format X is superior at everything, but the PS3 refuses to play MP3 or surround audio unless you lie to it and you still have to remux and arrrrrrgh" situations.
In the case of the PS3 it seemed like they were just being jerks. (You can't play a damn MP3 stream unless it's associated with a divx video?) On Android my guess is it's the SoC vendor who builds binary blob drivers in order to meet platform acceptance tests--Google just needs a better test suite, or sub-branding a logo for "Android PLUS Video That Doesn't Suck".