You might be surprised at how Europe can match products to a category.... For instance, if the iPhone had had a video capacity, it could have been matched (and taxed) with video cameras...
Everything is possible in theory, but that has got to be the most nonsensical argument for not having video capacity in the iPhone to date.
You realise we (as in "europeans") have phones with video capacity, right? Lots and lots of them. In fact, I'd venture to say that you will be hard pressed to find a smart phone without video capacity unless, of course, it has no camera to begin with.
No, it wouldn't be categorised any differently had the camera could be recording frame after frame quickly in succesion.