The biggest upside compared to PeerTube is probably discoverability. In ActivityPub, the network architecture means the video ecosystem is fractured and there’s no one cohesive place to find all PeerTube videos.
In atproto, the network is continually indexed by relays, which means that it doesn’t make a difference what app you use to watch videos - you’ll find the exact same ones regardless of the platform, since they’re all working from the same data.
This also means that different video platforms can provide different services for users without locking in users to their platform. Platforms would be forced to compete on what they provide to the user experience, not how well they can lock in users to their platform.
Watch apps will compete on consumer-facing features like the recommendation algorithm -- maybe they'll offer several, or just one that differentiates them.
Hosting providers will compete on producer-facing features, like advertising, content policies, analytics, etc.
If a user is displeased with either, they can take all of their content/activity history and leave.
