my phone never freezes doing large, bulk transfers. right now i'm using the motorola media link software for my 15000 mp3 library and only syncing smart playlists made in iTunes specifically for my Droid and it's working fine, albeit slow.
I haven't played with the MML since the update i downloaded a few days ago, but i remember using it the first time to sync my droid smart playlists in iTunes and the software itself was slow reading my library, navigating my library, etc.
i have never seen any of the cover art issues described here, but perhaps that is because i embed the album art in my mp3s and I don't let iTunes retreive it either (I use tag & rename which gets its info from amazon or freedb).
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