Yeah, they really should. So many times when I spoke to customer service they were very proud of a selection of web apps and being "pioneers" in this field... Yet the most useful apps in UK either don't work at all or as you pointed out barely work or they just aren't available on Philips TVs i.e. lovefilm (both Samsung and Sony have it).
If only I was aware of all these problems I would by a different TV, most likely Samsung. Philips charges premium as well but it's software is utterly rubbish: really buggy, slow and clearly not well written. I say it as a software developer.
I'm really cheesed off. I bought the Philips blu ray player as it was a Which best buy and offered connection through my wifi to BBC iplayer etc which is really important to me. It was delivered today and after getting this same error message I found my way to this forum. To now find out that this function doesn't work is so irritating. I'll be contacting the retailer tomorrow to return this item as it doesn't do what it says on the box. Philips should not be promoting this feature if it isn't available.