BY the way, how come they could never get hardware acceleration to work on the Pandora?
Not sure, and "They" as in the few community volunteers handling the OS and kernel work most likely don't have the time to write an optimized decoder from scratch. There is no huge development team, it has all been done by volunteer work.
I know that, but I just assumed by now someone would have offered a bounty or something. The Pyre better have decoders built in because that would be embarrassing.
Small community -> how much bounty do you expect to raise ? Devs are paid with real money, not candies, even if you raise 1000 dollars it won't be near enough to get them started.
For the Pyra you don't have to worry about anything, because the CPU itself should be powerful enough to decode even full HD.