Given that Hans was able to use the basic compositing system in 4.1 to implement a 3D textured demo complete with pixel shading effects for fun, are we really suggesting he won't be able to implement some form of video surface implementation?
I doubt he implements it soon so OS4.x users with PCIe cards will suffer poor playback for a long time.
If it's going to be video texture based (which is clearly the better solution unless you prefer the older way of doing it), then adequate 3D support has to come first.
By the time that happens perhaps frogs grow hair.
Anyway, it's interesting the reaction of some users "overlay sucks, it's better to implement it as a 3D texture even thought no one knows when/if that will happen and that will curse us to have poor video playback for years"