One of the proposed new features in HTML5 is "native" video player. Dailymotion.com has a demo of the player and it look pretty good.
The problem I have with Flash is...well the fact that I have to install it. With Open Video as it is called there is nothing to install, player works naively if you will. The cool thing about the player and the fact that it is basically an HTML tag is that you can you style sheets to shape the player as you wish, apply different filters on the video and array of other different things I suppose. However the most amazing thing about the player is that it is fast!
The only thing that will slow down growth of this in current browsers is Ogg Theora codec. This codec is only supported by FireFox 3.5, so if you cannot see the video it means you are not running that browser version.
Nevertheless, Open Video is very exciting news and I look forward for it to be adapter by the industry.
More information about video element can be found here.