I played around with iMovie 11 and the new create a trailer feature is really cool. It has many limitations, but the end result is still awesome when you take into account the simplicity of the interface. All effort can be put into creativity and hence less time spent on learning how to do this and that.
The result of my efforts is here which uses the trailers feature to string some videos together of the 2009 New Zealand trip.
In terms of how does video fit in with photography, I'm really not sure yet. On the one hand video can add things photography never will, but on the other, video is not as easy to share. Nowadays it has become much much easier, but it still has limitations. Also, video takes so much more work and knowledge to get a decent amount of production quality. I can see photographers using video to show an extended clip of a scene to give more depth to the story, but anything beyond that requires way too much work and expertise.