About freaking time I'd say. Now we can only hope to get the massive amount of users back we lost to streaming sites.
I already watched more videos today than over the past couple of weeks. It was such a chore for me before: I had to overcome myself to download something, like category, song/anime, format, filesize, rating stars... and then not forget the download when its finished. When I finally got to watch the video and didn't like it, delete it...
All that is a thing of the past now. And the random video option is kickass.
The quality is also pretty decent, alot better than most streaming sites. What I'd like to see though is an option for us to encode and upload the streaming version ourselves - this can take some load off the server and improve the quality even further since we can do it from uncompressed exports.
I'm sure you're already evaluating the costs of this, but I think there should be a broader range of streamable videos for the users and maybe even non-users in the future if possible. It's still kind of a hassle to show videos to someone not registered here.
But yeah, kickass job. This is propably the biggest improve to the .org since the Donut and I can finally see the community here getting some good growth in the future again.