It's not such a big deal for me as I have a video IPod and an Apple TV. I don't want to buy a second Apple TV, so we use the video iPod video out upstairs connected to the HDTV in the bedroom -- even with composite connection, and just the uspcaler in the TV, the quality is very nice. But, it will be good to know that if I we're going on vacation to a beach house or cabin, some place where you may hole up at night with movies, and I have all the music and movies I want trimmed for the space available in my 8GB iPhone, I don't have to bring the video iPod -- really, 8GB is plenty for subsets even though the part of my music collection I have in iTunes is 600 albums, or 5,000 songs; I have about 150 albums on there plus room for two or three movies, plus about 75 photos, plus overhead for more iPhone camera photos.
I wonder why nano and classic do 2 progressive scan resolutions and iPod touch and presumably iPhone will be the same do 2 interleaved resolutions.
I'm wondering with the video out update for iPhone if they'll flip the switch to let the camera record video clips.