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The current code now does not work out of the box as cloned repo anymore.
To fix both issues, sys.path manipulations can be used only when the regular import fails (try-except).
After this change was introduced, the README instructions how to use it as a mercurial extension are not valid any more and results in:
*** failed to import extension hgview from /home/wujek/mercurial/ext/hgview/hgext/hgview.py: No module named hgviewlib
hg: unknown command 'qv'
One has to set PYTHONPATH to include hgviewlib module oneself. I would consider it a step back actually, it used to work out of the box.