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No, he's not talking about the pointing your remote thing. He really means Radio Signal. I also thought this remote had it. Without it, you really can't call it a "smart" remote. Come on, pointing for IR is so 20 years ago. All my gear is behind me so to turn on everything, I need to point at my TV and then turn around and point towards my AV gear. I have a feeling I will be returning this "not so smart" remote.
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I could, but I don't think it should be necessary. As Kevin noted in his post even the cheapie remotes that come with devices such as the Tivo or Sony Blu-Ray support RF so this is a feature you guys should consider adding, especially since it uses the same 2.4GHz band as wifi so you probably already have the hardware to support it.
You make a nice remote and wish you great success. I've encountered some software bugs but these are inevitable given you are trying to support so many devices. It's only the lack of RF that I see as a serious shortcoming so consider putting that towards the top of your list of things to add.