True for the space concerns, but the accelerated chipset should offset some of the concern about battery life.

I would rather play them straight and rotate on a 16gb card than go through the steps of converting all the time to a more efficient MP4 codec. Even on my Q8200 it takes longer to convert than I would like and only saves about 35% of space unless you want to lower the bit rate more and see blockies on a 800X480 display