Try out the video in iOS 4.2.1 and see what changed. I haven't had a chance to install the final release yet. The betas traded the old video playback problems for new ones.
As for Arc90's Readability, I had planned to implement that instead of Instapaper but there are technical difficulties. Readability is client side reformatting and requires the entire page to be loaded before it can work. The bookmarklet expects that you manually click it after the page is loaded. I had a prototype working in River of News that was automated but it wasn't a very good experience. You'd see the page load in it's normal form and then would reformat itself. This could be a significant delay over 3g. That also meant it still downloaded the ads even if the final formatting discarded them.
As for Arc90's Readability, I had planned to implement that instead of Instapaper but there are technical difficulties. Readability is client side reformatting and requires the entire page to be loaded before it can work. The bookmarklet expects that you manually click it after the page is loaded. I had a prototype working in River of News that was automated but it wasn't a very good experience. You'd see the page load in it's normal form and then would reformat itself. This could be a significant delay over 3g. That also meant it still downloaded the ads even if the final formatting discarded them.