I find the version numbering in VLC to be fairly ok, I followed this project for many years now and it was really ok. The first big number was with the introduction of Qt and now after this time I think it is ok with 2.0 since there are a lot of new features and hopefully fixes.
I'm glad to see this all-systems nearly-all-codecs project still going on and evolving.
I will sync Gentoo soon to pull this one in and see how it works. I am happy that Gentoo leaves it to the users to decide to use potentially problematic things like libdvdcss and stuff or not. I was really surprised when I installed openSuSE 12.1 on some people's laptops recently that vlc was not in their official tree.
I just hope that VLC will get this stupid BluRay stuff hacked/cracked soon so I don't have to mess around on windows with certain programs to rip my legally bought BluRays and waste 50GB HDD space just to be able to see it. (Of course it would be better if content mafia left out all that play protection once and forever.)
I just wish that they would spruce up the UI a bit. Just redoing the volume slider (by turning it into a line; instead of the triangle) would help A LOT! Also, I wouldn't mind if VLC would use the Free Desktop Specification for icons when using Linux.
Ubuntu lovers can directly download vlc 2.0 from software center in Ubuntu 12.04 but for 11.10 you need to add PPA.
My preferred method currently is to use makemkv (in info mode) in combination with dumpVID and aacskeys to get DiscID and VUK of the disc. Paste this information into the KEYDB.cfg and then use mplayer2 (with libbluray support compiled in) for playback. Keep in mind that the DiscID/VUK/KEYDB.cfg steps are a one-time action for a disc.
In case this doesn't work I use makemkv in streaming mode + mplayer2.