We shoot a lot of small video clips with our point-and-shoot camera so I've been hoping Flickr would add video services for quite some time. There's plenty of great sites/communities for video hosting. But if I can put my all my stuff on one site with a more established community (and the backing of a major player like Yahoo) then I'd rather go with that.
The service definitely seems to be experiencing some first day jitters (and the slow connection here at my hotel isn't helping.) But I expect they'll get that ironed out in the weeks ahead.