From what I saw, even cycorder couldn't match the speed that the iPhone 3GS had going. It is possible Apple just don't want people bitching about the choppy and bad quality videos that it would've generated on the first two iPhones.
.
And lets not forget the much better camera in the 3GS - Cycorder is a joke in quality to the 3GS, just because of the higher quality cam. I had Cycorder on my 3G and one look at the 3GS vids and well - just forget Video on the 3G or 1st Gen iPhone