Good point. Instagram's killer feature was that it made amateur photographer's photos look better, but the answer for video can't be just apply filters again, right? Could it be transitions (like how Vine has hard cuts in and out now)?

I think video's killer feature is the image stabilization. A large percentage of bad videos are because they're shaky as hell.

This is not a "killer feature" - Apple already includes a Class in iOS for video stabilization (AVCaptureConnection Class). This is just regurgitated marketing crap, as usual.

It's completely proprietary tech developed by a team of image processing specialists on the Instagram team.

It does not use any standard iOS libraries in any way whatsoever.

Because it can't due to Android interoperability. Seen as they removed real time filters from the iOS version to make it more like the Android version

Color correction can't hurt either.

The videos I've seen so far are kind of an artsy fartsy super-8 b-roll look. Doesn't seem any worse than the photos. Of course it depends on who you follow. Not necessarily looking forward to seeing video from my family members who mainly post screengrabs of motivational slogans or their dogs.

i think it is a safe bet that you can plan on your instagram feed filling up with terrible videos :)

It definitely is, but with any service the people you're following makes a huge difference.