1) Oh absolutely, I don't dispute VLC remains useful. I just think it's a shame that we still need VLC. To most of its users, VLC is "that thing that my friend told me I'd need to install to play these videos because for some reason Windows can't play them on its own"
2) I'm more worried about the precedent this sets. Is VLC going to need new cash injections every time Microsoft change the rules of the Windows Store, or release updates to Windows 8 that break the app? As I say, the next major release of Windows will undoubtedly break everything all over again.
It just strikes me as an awful lot of time, money and effort to build a solution to a problem that really oughtn't to exist in this day and age...