Yeah, I think I agree with your point if I understand right. What you're saying is that there are a lot of other options out there to get some good video on a pda. That's very true. So I guess this is just one more!
They are banking, I think, on the fact that they are doing quality animation and you'll get hooked on it, so you won't mind the relatively low weekly cost. Remember that this is probably for those people that just want something cool and easy, so it might be just right. Eventually it will be marketed to regular cell phone users when phones can play the videos. You know... the ring tone crowd that doesn't do much else with their phone. Or for now, the pda users that go, "Wow, I didn't know you could do
that!"
I'm not sure what Google Video gives you, though. Isn't that just a beta search engine, that provides screenshots?
And, believe it or not, Kinoma Player is actually what they recommend you use to watch the videos instead of the default free player.