I seriously doubt changing the file extensions would work, they use completely different codecs.
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Video files on the PS3 HD?
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No, you are still reconverting.
MKV and MP4 are two different video containers. Both are capable of running MPEG4 AVC content, it's just that the internal arrangement is different. In theory you can change the container, but keep the actual encode the same = no loss of quality.
The problem is that the PS3 is very fussy about the types of audio you can run (no such problems with PC) and additionally the PS3 is also far from a decent AVC player, so even if you do just change the container, and reformat the audio, the chances are that it won't work any way.
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