What's real need to be fixed is how to provide an easy copy-pastable way of viral spreading like GIF.
GIF is popular simply because people can copy it around by 2 clicks. Copying video files is PITA because bullshits like region restrictions, CDN providers, dynamic URLs, etc.
That just the thing, though; video file formats do not intrinsically have any of those limitations, which is exactly why he wrote this article: it's a false dichotomy.
Files are just files, and video ones are typically smaller.
Imagine, if you will, a GouTube where animated GIFs were rigorously checked against existing copyrighted material, removed by DMCA requests, hosted around the world. How would it be mechanically different than Youtube, except for changes surrounding the Flash player?
Thusly, imagine Tumblr hosting WebM/H264 files instead of (or in addition to) GIFs. Mechanically identical.
There are so many exceptions when saving a video, like you got only a chunk of a video because video files are segmented in m3u list, or stupid auto-throttling algorithms, or dumb-ass resolution auto-switching.
GIF is popular simply because people can copy it around by 2 clicks. Copying video files is PITA because bullshits like region restrictions, CDN providers, dynamic URLs, etc.