Overlay is obsolete.
The "classic" method of implementing video overlay might be obsolete with certain hardware. This does not however make the concept of overlay obsolete. As I point out in my original post:
PS. It does not matter how the overlay is implemented. It could be dedicated overlay mode supported by the graphics hardware, or it could be implemented via the 3D hardware. The important point is that both OS and the device driver implement it and the APIs providing the overlay to the applications.
Hans has been
saying that it is unlikely that he will support the old Picasso96 PIP APIs. This is unfortunate as it will lock out textured video from all old applications using the API. In that sense overlay indeed has been obsoleted for OS4.
This also means that in the future if some application wishes to support fast video display on OS4 the application has to have two code paths, one for classic Picasso96 PIP API (for older graphics cards) and second for some yet to be determined new API (for newer graphics cards). Hardly an ideal solution.
Of course, it also means that anyone who is using newer RadeonHD cards in low-end systems will need to wait undetermined time to have proper video playback, or upgrade their system to Radeon 9200 or some other card that is properly supported.
Textured video is a much better way of doing the same thing at the same speed.
It actually is considerably slower to use textured video. There is some setup involved, and you need to wait for the operation to finish (actual performance of course depends on the implementation details). Classic overlay gives the application a frame buffer it can write to, and it will be displayed automagically without any extra calls or waiting needed. It is even possible to completely disable the OS and bang the framebuffer and it will update on screen just fine (this is btw why with Mediator setup you could route amiga display to a video grabbing card, and then display the graphics in an overlay window, and run HW banging games and demos).
If there's a possibility to have both classic overlay and textured video, overlay would be the better choice for the low-end systems. This also means that it likely is a better idea to use a graphics card with true overlay in such low-end systems instead of a card that doesn't have the classic overlay.
Textured video has the benefit of being part of the actual display frame buffer though, and then you can perform other effects on it (such as transparency), and for example take screenshot of the video.