Video Advertising, Online (banner, text, Flash) Advertising- do they share the same bed?

Online advertising seems to be on everybody's minds these days. Within the Web2.0 craze, marketers are being tempted by the 'social-network' fruit. Whether users are cognizant of their newfound exposure to newfangled advertising methods hides behind the proposition that they'll do something about it.

Google's Adwords technology tied in with their goodness mantra of providing users with advertisements that were actually relevant. Now, the race is on the figure out how Video Advertising will fit in.

Starting about a year ago and picking up more recently, video advertising is getting exciting. Bloggers (SearchEngineWatch, ITNewsDigest, TechCrunch ) have been all over this, and VC's have been showing increasing interest [link]. Names like VideoEgg, YuMe, Blinkx AdHoc, ScanScout, even YouTube, are entering the fray of experimenting and developing the video advertising market.
It's exciting because nobody really knows which direction things are going.

I split the interpretations into the following 4 groups:
1) the "short pre-roll ads are effective and overlays are annoying" group
2) the "we think text/flash overlay ads are the future and will offer a thousand different variations on it" group
3) the "we not only believe in overlay, but Picture-In-Picture video overlays!" group
4) the "we're a bit old school and we think video advertising is just like TV advertising" group

Beyond the format race, there's also the relevance race. The two are inextricably tied, as the relevance of a video is only as good as its meta data. Some solutions are using speech recognition engines to analyze videos and others are even attempting image recognition. How do you think either recognition engine would categorize the "Daily Milk Gorilla drummer" Ad?

This is going to be a very interesting year.