The snipping tool in Windows 11 can already record videos. I just copied the result and then pasted it in Telegram, it worked great and can handle more than 256 colors. I guess having gif support for those who need it is better than not having it, but I don't see why it would be better than the current video format.

I don't even know which format they use at the moment when copying to the clipboard, but when saving as a file it's saved as an mp4 file using aac for audio and h.264 for video.

Sounds a bit like the old Problem Steps Recorder (PSR) tool in Windows. It was a little known tool that recorded keystrokes/clicks/screenshots, which was great for troubleshooting.

Sadly, the screenshots were all lossy jpegs, and it wrapped the whole thing into an mhtml file.