Glad someone else brought this one up. I'm about 3/4 through building my first HTPC and now testing Theater View a bit more intensively. Because I'm using my low-res tv as display, theater view is the only visually acceptable option.
I would also expect playback to contine where it left off. Maybe I'm thinking too analog here, but that's kinda normal player behaviour isn't it? Why on earth would anyone want it to go back to the selected file - if they did, they could just navigate back there couldn't they? As Theater View is inevitably the one most folk will use for a HTPC, user friendliness is critical, especially for those like me who have the rest of the family using it.
BTW, I've now tested several other flavours of HTPC Media suites and while the others score points here and there, MC still comes out on top. I still can't help feeling that Theater View is a bit neglected though - possibly because the rest of MC is so darn good ;-)