Exactly. and yes, it is very useable, visually & audibly, with headphones on a plane. Not as nice as an X50 or 51 with VGA (which is more like a PSP in clarity), but as "freebie" it's good.
It also depends on how high of a resolution you encode your videos to. The highest bitrate your device can play without stuttering or dropping frames yields the best results for high quality viewing. But the higher the quality the more memory it takes but storage is very cheap nowadays so go for quality over quanity if you are really into serious video that will rival any device with its screen resolution.