Embedded videos on Linux seems to be a hit and run type thing. You never know if a video embedded in a web page will run. Youtube videos have no problem running on the machine. Perhaps that is why youtube is so popular. The web is becoming more and more about short video clips, and on my kubuntu install I have the mplayer video plugin installed for firefox. Some videos will play, some will show an empty mplayer plugin and others will just loop continously trying to load (cnn video).
(I haven't seen that video linked above, its something about Jon Stewart, just an example of video that won't play.)
I found this article on flash based video on techmeme.com. The problem with some flash based videos on Linux is that they require a player that is newer than version 7. We anxiously await version 9 of the flash player for Linux, which will bring Linux on par with other platforms.
Here is a different view, a view from the perspective of creators of video in Hollywood. Linux is an excellent system for developers of video content.