That being said, I'd love to use it on my site to assess the effectiveness of introduction and tutorial videos = )
I wonder why he doesn't open it up to long content.
That being said, we see many people adding their videos to youtube, vimeo, and hosting them with Wistia. YouTube is the worlds biggest video search engine so it's a no brainer. But if you're a business, the key is understanding who is watching your videos on your own site and how they're watching them.
We also see many other people doing much more than just hosting video. You can see many of the other sharing uses here: http://wistia.com/product/tour
That being said, we're always customer focused and will adopt to where people need us to go. You'll notice that as the volume of views goes up the price per play goes down. Given that you'd need a significant volume of anything to have an advertising play that makes good money the price-per-play should become more reasonable.
It seems to me that you're target audience would be larger, publicly-traded companies, not cash-strapped startups. As an example of how frugal startups can be, Andy Liu parks his car in 2-hour parking and moves it throughout the day instead of paying for a monthly parking pass (from Mixergy interview).
In the case of 2-person startup this might mean sending out pitches to investors and learning who's interested based how much time they spend watching demos. At the other end of the spectrum, it could be anything from empowering sales reps to compliance training.