Funny how you now come up with features that you didn't mention at first, seems like you want to show-off AirVideo, if thats the case, go nuts, use commercial apple software.
Fact is, Apple doesn't make it easy for third-party tools to integrate with their systems, infact they even make it especially hard.
I don't think I "came up with features I didn't mention at first".
I said:
Airvideo does the same thing.
The server app is transcoding the videos on the fly to a compliant H264 MP4 and streaming it to your device (which can then AirPlay it to the TV). I'd really love to see this on-the-fly transcoding built into MC in the future so that I don't have to run a separate server application and so that I can browse my videos using my MC metadata.
With AirVideo, I can play any of my video files on my iPhone and they start playback immediately (after maybe a 1-3 second long prebuffering period, even remotely over 3G). The server is actually converting the file "on the fly" as it streams the file over to my phone or iPad. I can watch videos as though they are local, as long as I have a fairly strong network connection. I can fast forward and rewind easily (scrubbing or via 30 sec skip ahead/back buttons) and it essentially works beautifully.
Now, I didn't specifically mention that it does automatic bandwidth adjustment depending on your connection type, but I shouldn't have to mention that. I said it works, even on remote 3G connections, and it does. Forcing it to be crappy low-res streaming quality when I'm on a 802.11n wifi connection on the same network as the file server would qualify as "not working" as far as I'm concerned. I'd certainly be interested to see what video on Gizmo looks like on a relatively decent tablet screen. But, if it is clearly compressed for a low-resolution phone screen, then I'd really not be interested. AirVideo does a passable job converting videos on the fly for me when I'm on 3G. They look beautiful on the phone. They look passable on the iPad, though I wouldn't call it "beautiful". On local Wifi, they look pristine though.
Maybe MC's conversion engine is either a lot more capable, or a lot more aggressive about using upstream bandwidth on your home connection. But, color me skeptical.
Fact is, Apple doesn't make it easy for third-party tools to integrate with their systems, infact they even make it especially hard.
That, too, is a matter of perspective. There is absolutely nothing stopping anyone, JRiver or one of us schlubs, from creating Gizmo for iOS other than learning Objective C and paying $100 to join the developer's program. I'm not sure how that qualifies as "especially hard".
What the App Store model does achieve, though, is that they protect me from the pre-installed crap, skins, and spyware that proliferates on other platforms. Now, all is not wonderful and perfect, I agree. The App Store model also means I can't easily get a good NES Emulator for my iPad, and means they just pulled down the awesome iMame app. But, I get good battery life, I don't have to worry about malware, and I get updates right when they come out directly from Apple.
Everything is a balance.