Apple is known to understate the tech behind the products they sell. We'll probably see its full potential in the coming years.
... but not at video playback, I'm afraid... you just can't make it mysteriously work at a much higher data rate (to allow for uncompressed HDMI data rates - around 2 Gbps for 1080p60), at least not on current hardware.
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You made me think of something. Ok, since lightning lacks enough connectors to stream raw 1080p in a sufficient time, couldn't they just include a flash storage for buffer in future adapters? This way there's a delay before the content is displayed, but at least the HDMI source would be uncompressed. Idk
I haven't handled this adapter yet so I don't know if it has two modes:
- receiving the MP4 (mov / m4v) file (that is, an iOS-native video file) as is (verbatim), buffering it and decoding itself, resulting in the best possible video quality
- simple mirroring for everything else, meaning the iPad compresses the video stream and sends it over to the adapter, which, in turn, decompresses it. (Directly programming the TV output is done exactly the same way - while, then, the ATV doesn't actively mirror the screen, there is compression involved. This is why many current multimedia players for iOS manage to utilize almost the entire screen width on the screen but still have inferior framerate and resolution compared to playing back iOS-native files or playing back over (pre-Ligthning) VGA / HDMI adapters)
These two modes are the default on the Apple TV. If Apple was smart enough, they allowed for the former too, not only the latter. However, the former requires at least some storage buffer so that at least a part of the MP4 file can be pre-buffered. Assuming the MP4 file is streaming-optimized, even a 80-100 Mbyte buffer would work, assuming the iPad continues to transfer the file during video playback all the time. With unoptimized files, much larger buffers are needed. (I've published a lot of dedicated optimized vs. unoptimized benchmarks for both the ATV and plain iPads - I can provide you with some links if interested.)