I had this interesting email conversation with Karl Vollmer in which he stated that he had no intention to re-implement the mpd_method "file" support in version from 3.3.2. Using the http method by default screws your playlist in other clients. It also refuses to play flac files. The advice I got from Karl was to transcode the flac files to something else, which I do not find a very good idea at all. That's why I edited the wiki page.

Puntmuts.