Yeah, this is a deal breaker for me. If I could stream my own local media (especially photos) I'd be interested. Unfortunately those kinds of features are only good for the consumer and not the ongoing revenue stream, so they are less likely to happen.
This should be in the FAQ. Surely we aren't the only ones asking this question.
But then this box essentially becomes a Windows Media Extender or an Apple TV and would cost more. There is a plug in for Windows Media Extenders which allow Netflix WatchNow videos to stream to your TV. It's buggy, but getting better every day. I used it but once I saw the "official" solution and for only $100 I jumped to get it.
Also, keep in mind the Apple TV is $225 and the cheapest Media Extender is also around $250. So you have to pay more to get the expanded features that you wish.