To be fair (I always want people to get a balanced view of products before buying them).

1) The touch can get to a similar amount of features like the n810 with the use of jailbreaking to allow you to install stuff that Apple doesn't want you to have. The touch can also do SIP calls and what not but you will need a headset that has a microphone (no built in mic on the touch).

As for the video question, if you re-encode the video for the tablet then it runs perfectly. (I have a few favorite shows and movies on there myself).