On the iPad however, you cannot download files, you don't have a file system, and you don't even deal with corrupt files and every movie file you upload to the device is in Apple's special format, meaning that it's playable by the built-in video player. So where does VLC come in? Who will need it?
People who want to stream video files on their iPad?
One of its strengths is the ability to play a wide variety of video formats (chart) and streaming support. We should expect the iPad release as early as next week.