Well, I finally had some time over the holidays to do my own video playback test and I thought I would share my results. Here are the details of the file used and the testing parameters:
Video format: mp4
Codec: H.264 MPEG-4 (part 10) (AVC1)
Resolution: 720p
VBR, average bitrate: 1,063Kbps
Audio format: AAC, 2-channels
SP3 was charged to 100% and allowed to loop play the video until it shut down on its own. Wi-Fi and Bluetooth were left on, screen brightness was set to 50%, audio level was 30, and the type cover was attached. A video camera was set up to record the SP3 along with a timer to determine the exact time SP3 shut down. Metro GOM player and desktop VLC was used in this test. Hardware acceleration in VLC was set to auto. And here are the results:
Metro GOM player: 6:52
Desktop VLC: 6:01
I only ran the test once for each environment so I can't say how reliable these numbers are, but the GOM player performed almost as well as the 7:10 achieved in the op's video. The difference could have been in the resolution and bitrate of the file. VLC's result only reinforces the idea that Metro apps should be used as much possible to preserve battery life. I don't know if six hours on desktop is good or bad...
One thing I would have liked to have tested is a video file from the Xbox store played in the Xbox video app. I'm wondering if it's optimized like it is for movies from iTunes for the iPad.