I saw an article about how iPhone OS 3.0 Safar handles Video. It is cool, it is now supporting HTML5 video Tag. Safari understands the <video /> or <object /> tag and launches the Quick Time player. I am able to move the scrubber bar. It is kind of cool. The codec supported is not OggTheora, it is H.264, please visit Apple site for more.
This will unleash lots of possibilities. Custom streaming or TV Streaming or whatnot - quite possible just with HTML5 and Http Server, may be Erlang will be the language to support needed scalability.
I checked the Video capabilities by converting the video into ".mov" format and created small html page with video tag. Safari understood the video tag and displayed the play button. Once I touch (click) the play button, it launched Quick time iPhone player and it played the Video. I am also able to move scrubber, it felt like a full streaming.