The KRZR K1 video is decent CIF quality but it's two year old techology. The Nokia N70 videos were just as good quality back in 2005.
Check it out and judge for yourself:
KRZR K1 video of the Skyte (blip.tv bug, I rotated the original but the flash video below is not rotated: original KRZR K1 Skyte 3GP Video with correct orientation)
Not bad CIF quality. Not great either. About as good as the N70 which is now 2 years old. Not nearly as good as an Nokia N93
Compare and contrast with Richard's Nokia N70 video of the Skyte
UPDATE:It looks like blip.tv took the FLV that the Brightcove Publishpod encoded out of my MP4 (if the video below doesn't work, go to my blip.tv post to play it!):
The first video I did with my N93 was a 5 minute one of the SkyTrain (of course!). It's an awesome video but its 100MB (since I did it at 640x480 30fps MPEG4). I tried to upload it to Brightcove (since I know it won't work on blip.tv, my fav service; file is too big) but it didn't work. The Brightcove Mac OS X uploader, Brightcove Publishpod, successfully encoded the MP4 to flash video aka FLV but the sites says it's processing (and it's been saying that for 24 hours!).
I guess I'll try Google Video. I did search the Brightcove knowledge base and FAQs but found no documentation for video file upload limits or that MPEG4 (and yes I know there are many variants of MPEG4 and perhaps Nokia's is not supported) was not supported. Ah well early days. Brightcove sounds great (Robin Good's Brightcove review makes it sound wonderful) but I couldn't get it to work.