I bought it and it seems to do alright. As for the video encoding they have to add support for it to work. They are always adding new sites for it to encode. Just not fast enough.
I'm using SkyFire almost exclusively now. RARELY do I come across a site with an embedded flash video that will not play. I'm really impressed with it! Only thing I'm getting frustrated with is the inability to save images. Everything I've read says all you have to do is tap and hold the image (just like any other browser) and the "save image" option will appear. It's not working for me though. Anyone find a way to save images successfully?