Flickr videos come to users with few restrictions:
1. Videos can be uploaded only by pro members though anyone can see them
2. Videos can be atmost 90 seconds long
3. No more than 150 MB per video. (Well, I do not see any 90 sec video going beyond 150MB)

The restrictions are more seen as a way to avoid illegal videos coming in and infringing copyrights. The goal is not to have another youtube but rather a place where you can upload videos that you have created.

As noted by Michael Arrington, the feature to play videos from thumnail screen is just awesome!

Videos can also be embeded in webapages just like this:

We at MyBlogLog, immediately updated “New with me“, to show the distinction amongst the flickr videos and photos.

Mostly videos have been taken up as positive move. But, there are segments of flickr users, who are opposing the videos. They have started groups on Flickr opposing videos (like No video on flickr) and have been posting photos to support their protest. Techcrunch has even started a poll: “Do you support video on flickr“? As of now, people supporting video are 14% more than the counterparts.