You're totally wrong. you can either convert or play with live conversion (see pic). Playing with live conversion is streaming, convert converts it on the pc for later transferral to the iPad. so if you're around the house, just stream, if you're going on trip, convert, transfer then travel
the live streaming on airvideo is just not a viable option for many people only on wifi machines or who cant leave their computers on 24/7. its really an option for when you arent moving - at home, visiting parents, at dorm etc.
another poster stated that airvideo can put sound out of sync when converting hard copies to put onto ipad. can anyone else confirm this? why not just use handbrake or isquint etc ? they convert perfectly and at awesome quality for playback on Tv. plus the converting part is what people are trying to avoid.
i just got AVplayerHD. awesome interface. great picture but on my ipad1 i cant get the sound synced perfectly. waste of 3 bucks. anybody use cinex or O have this problem? Vlc quality is craptacular and no video out.