Why would N900 have problems with streaming vids? The device is more powerful than the G1 and it plays Youtube and Jetflicks very well. So good in fact it is like play a good quality MP4.

If Youtube is playing standard def, it can not be the common excuse that the N900 is playing back at 800X480. The N900 has hardware acceleration, so this should not be an issue with standard def content.

Almost everytime someone points out a sluggish video response from the N900, people keep bringing the high res screen up as an excuse. Why have it if it will not play back smoothly?

Rhetorical, but does have at least some (kind of) point.