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The new Gallery asset defaultly displays photos. However, it has the hooks to display other things, so indeed it might just display video as well.
This feature though is quite controversial. It may not be added because hosting video takes special hosting infrastructure, which most hosting providers won't support. Therefore, this may not be added. Or it may be changed to display videos from other sites like YouTube, Metacafe, Viddler, and Blip.tv.
We'll also be having a look at other updates, like being able to crop, rotate, resize, and maybe even annotate images. If we do these features, they'll find their way into the Image asset as well.