And it still doesn't support 1080p video, at best it can do 720p.
A Pandaboard ES can play 1080p video (I've got one on my desktop now), but it costs ~180USD. It's a wholly different board, however, dual-core Cortex A9 1.2GHz with 1 GB LP-DDR2, 802.11 b/g/n, 10/100 Ethernet, Bluetooth v2.1 EDR, HDMI, DVI-D... it's also very well supported for now, the latest drivers release supports Wayland (!).
The Odroid-X is another alternative, it costs about 50 USD less than a Pandaboard (no WiFi or Bluetooth however) and has a quad-core Exynos4412 Cortex A9 1.4 GHz, but I don't think HD video acceleration is working on Linux at the moment.