Want to watch videos encoded with crazy codecs on your iPhone without converting them? VLC's now a universal app. It got a speed boost in the process, and you can delete videos directly off your iPad or iPhone. [iTunes]
skimming through the comments shows that much people are still pissed!!
If you want to watch any video your only option is Zumocast, it streams from the computer but it does let you watch ANY video.
VLC is still new on iPhone and I'm very sure it will become the best player, it just needs sometime.