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I don't think it's that bad in practise. My optical drive packed up recently so I did some research to determine whether it was worth buying a Blu-ray drive now. I concluded that it was. Only BD+ titles, which are currently limited to Fox, pose a significant problem, and even those can be played with a little more effort. The rest just work, more or less. I don't buy many films as I don't tend to rewatch so I rent them by post instead. If there's one title I want that I know to be problematic, I'll just choose DVD instead, but that hasn't happened yet.
It doesn't change the fact that you have to crack its DRM to be able to see it. And doing that is also extremely situational, where new Blu-rays can and do make old Blu-rays not work any more. With DVDs it's the same thing, just that it's much easier to crack the DVD DRM.
I'm pretty sure the LAN comes from the same place where Client does. As in, Video LAN Client and Video LAN Server were originally created for streaming video over LAN on a campus. Now the name is completely deprecated and thus the VLC acronym has no actual meaning.
Sorry, i didn't explain very well. What i meant was, VLC could stream video over a LAN because of it's pipeline architecture (or the architecture was designed that way to allow for that usage). That's different than a standard video player that just dumps the decoded video straight into the gpu video buffer for display.