Agree. I like this suggestion:
I actually think that, if you have any choice at all, there should maybe be three options that apply to all cover art and sidecar files in MC:
1. With the media files (Sidecar files)
2. In a Metadata subfolder with the media files.
3. In a specific folder (Automatic)
All three should offer an additional separate option to create folder.jpg files (for Widows Explorer support). And another one to also store images in file tags when possible.
I think #1 should be the default, because it is the most foolproof and cross-compatible.
Number three would work like it does now, sort of. Except that:
1. It would default to a "Media Art" folder in your My Documents folder (rather than buried in the hidden AppData directory). See the other thread for more.
2. MC would take control of the naming structure inside that folder, black box style. JRiver just decides themselves what file and directory structure to use in the specified folder, and it is just designed so the user doesn't have to know they are even there or care, but so that they can all be stored in one spot away from the media files.
If they want to design it so there is no user-option at all, however, then I think the best option is certainly the sidecar method. I agree with Rick, that there aren't many cases where that doesn't work just as well, and I don't see why not to just standardize on that. I know you would rather not though, and you might not be alone.