That's fine, but you might want to remove "videos" from the File Manager description on your front page:
I also noticed that unrecognized file types are blocked from uploading to the file manager as well, you might want add the common video formats to that list as well.
As you have correctly identified, there is a lot of complexity involved with hosting videos. I was just trying it because it sounded like it was already supported, but I'll be happy to host them externally and embed them. I'd welcome such a feature if you got around to it, but I can certainly understand keeping this on the back burner.
Thanks for the clarification.