I've tested the just-released 2.0.2.
- it indeed fixes mp2 / mp3 playback. Now, all my MKV / SD DVB TS files work.
- it still has DTS / AC3 audio support (not for long, I'm afraid... That is, you absolutely need to backup the IPA file, should you want to use it for DTS / AC3 audio playback in the future.)
- unfortunately, it still is unable to play back anything using hardware acceleration, not even iOS-native files (let alone MKV's). Therefore, if you do plan to play iOS-native files (mp4 / m4v / mov) or MKV's, you still absolutely shouldn't use this app, assuming you want the best possible framerate and batter life. As has been explained in the article, the player is usable with other, no-way-hardware-decodeable formats (e.g., MP2 files) but, again, the top AppStore players contain better H.264 and MPEG-2 video decoders.
- the new version seems to have introduced an instant-crash-while-trying-to-decode-in-filelist-view bug with the test file Sininen laulu
https://copy.com/cxawnYt2m97fi2ED . As soon as the player tries to parse the file, it crashes.
All in all, I still don't recommend it, unless you absolutely need DTS audio and don't want to jailbreak for, say, XBMC. (AC3 is now licensed and supported by several AppStore players, on the other hand.)