One of the key points being discussed allover theplace is the restriction on the length of the videos that can be uploaded. They're limited to 90 seconds, at least for now. Arrington get's it and so do others, including NewTeeVee: Less crap to sift through, lower bandwidth costs and content that ends up being closely tied to the photos surrounding them. It would seem that, at least for now, the idea is to carve out a defined niche of the video market.
Seems smart to me, and that's not a surprise given that it is coming from Flickr.