Over WIFI it's great!!! Over 3G I'm guessing ATT/Apple forced them to use lower quality video... looks just like Youtube vids over 3G.
They do have black-out rules... so you can't watch your local-area team, and you can't watch Nationally televised games ( the games that usually play on TNT and ESPN).
Basically this app is great if you're a big basketball fan... or if you live outside of your team's coverage area (like I do).
I live in the bay area (Warriors land) and I've been able to watch every Kings game 😀