I agree in theory, lemmy becoming a capable scroll-when-bored service in general is gonna be the thing that increases the user base and retention. But hosting videos is dummy expensive and the fediverse is idealogically opposed to the advertising that would pay for that.

Offloading videos to YouTube or something similar and embedding them would be just fine for me, I like the idea of videos being on YouTube instead of being kind of orphaned in that liminal, unsearchable twilight zone of Social Media Video Hosting anyway