Great post. A major misconception or miscategorization is that the decision makers for software is invariably a developer; however, most developers follow specs more than their hearts and minds. It sucks that developers take the brunt of non-ideal business decisions.
The reason for some issues is the bitrate of the file. The bitrate is pegged at 2.47Mbps -- much larger than the 640kbps, 320kbps or even lower which streams nicely.
Even with the direct link, I get jaggy playback on my desktop (only because the server makes the file open in WMP or save a WVX playlist).