For a more expansive and detailed treatment of the matter commented on succinctly in the video linked in this Sounds & Fury post, take a look at this by Wall Street Journal movie critic Joe Morgenstern:
Feature films squeezed into iPods and the like represent a technical triumph. They are also an oxymoron bordering on a travesty for those of us who've grown up going to movies in theaters, where, in the company of others, we've been taken out of ourselves by images vastly bigger than real life. Yet the fascination with ever smaller screens seems unstoppable. In an era of take-out food, people want take-along entertainment. What's more, the downsizing of images will work inexorable changes in content. I'll be exploring some of those changes in a future column, but for now ponder this: Some Hollywood writers, recently returned to work with a contract that provides for new media, are now busily writing for cellphones.