Ive got one, and it is good.
Stereo Speakers and headphone jack.
I havent used it for movie playing at all yet, still messing around with emulators and free software.
Emulation; It's surprisingly good, Mame stands out as the most advanced and stable and emulates over 1000 games, as well as being quick at ~233Mhz. There's emulation for most 8-16bit hardware. UAE is progressing nicely, most games still suffer from inaccurate/choppy sound even at 280Mhz, but gfx is well done. Vice (C64) is very good and stable. In short, all good.
Unlike say the PSP or DS this is an opensource device, software is in a state of constant development and is occasionally buggy, so dont be to upset with having to reset every now and then.
The OS is stable, and quick. My Mk2 with 2.0.0 boots in about 10 seconds, navigation is straightforward. There's not much to say, I do find the joystick to be a little innaccurate at times, overstepping a selection, but that could be me?
If you like messing around with emulators and like handhelds get one, simple as that.