So If I take a Picture/Video on my iPhone 4S...

Yes, if that feature is turned on, both are signed into the same account, and the iPhone is on a WiFi connection.
 
I saw a demo where videos synced, but I'm not sure what to expect. HD video can take up a lot of space/bandwidth.
 
I saw a demo where videos synced, but I'm not sure what to expect. HD video can take up a lot of space/bandwidth.

But was it syncing via iCloud or through Wifi syncing with iTunes?

I would love it videos went through iCloud too, but I have not been able to find any mention of at all on Apple's site.
 
So you can copy pics in the Photo Stream to some folder on your mac, and then freely delete the photo from the iPhone?
 
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