VidYard compares itself to community based video sites because that's what the vast majority of businesses are using to host their video content.
I'm not sure I understand the "limited bandwidth" comment either. As it states on the VidYard pricing page, VidYard offers bandwidth well into the terabytes with no mentioned limit. Additionally the pricing for this bandwidth is quite literally 10x less than BOTR.
Instant start technology is very different from RTMP. RTMP is just one of VidYard's many streaming protocols and is unrelated to the technology required to play videos instantaneously.
I could see a whole range of useful applications for a tool like this. The first thing that comes to mind... stock picks. Looking forward to seeing the outcome of this Obama poll.