airplay theory on daring fireball

I really like Daring Fireball.  But one post today didn't really make sense.  Mr. Gruber posits that the reason iPhone may not be able to push recordings from its video camera to Apple TV might be because "the iPhone doesn’t have the processing power to compress movies" tight enough.  He knocks down the theory on other grounds (because the same video streams just fine after being imported) but I would note that the iPhone seems to compress video on its own anyway - remember how an emailed or uploaded video gets compressed.  Perhaps he meant high quality compression (not the grainy stuff in emails).  Just a small note and of no consequence as the theory was rejected anyway.