I still say that if you serve MPG files you will be better off and maybe safer from litigation.
It might be a challenge for those who have plug-In feeds such as I do at
http://www.sobecams.com to stay in business.
Becuase if webmasters agree that it is better to serve only MPG files they may be apt to cancel subscriptions with the plug-In feeds they are using.
I know that SoBeCams lost a few customers to SoBeGirl becuase SoBeGirl sold them 200 content sets for 1200 bucks.
And if you couple these great video content deals with the fact, or opinion, that the MPG file is not a streaming file format becuase it is a downloadable format you may just cancel that feed and buy a bunch of MPGs.