I know people have been complaining about the orientation of the fb but that is, unfortunately, the fault of the hardare and otherwise it would sound as if the current pdaxrom kernels support for the pxa270 video overlay is working fine so why hasn't this code made its way into 3.5.4.1 yet? If RP thinks he can make it faster then great- it'll be worth the wait.
3.5.4.1 is looking really impressive but IMO you can't really make a final release version until this feature gets included, especially since pdaxrom has it already. I suppose sashz would enjoy the extra attention/users his distro would be getting though!