maybe.
the only feature i want is the capacity to lower the quality of a video, making high-bitrate videos display perfectly without any conversion.
mplayer -lavdopts lowres=1 <videofile>
Quite honestly, I doubt that there exists a MPlayer client capable of doing so. This is why I asked for the compilation of a player that already has has this feature.
Also, of course, it can scale a high resolution video down on the fly. I do believe in some way mplayer can do the things you describe, the only problem is that it probably takes CPU time to do so just like it does to convert a high quality movie down to a lower quality on any PC.
As far as porting TCPMP, the challenge there would be that it's made for Windows. Which of course makes the port work a lot more difficult than most other apps ported to Maemo.