That is a problem, but it seems like it would be very easy to move the image - click for video behavior into a pretty small JS library. Writing something like this probably wouldn't be all that terrible:
<script type="text/javascript"> $(function() { $('#video_1').to_video('myvideo.mp4', 'myvideo.ogg'); }); </script>
<img class="really_a_video" id="video_1" src="mythumb.jpg" />
I'd still rather do that than deal with Flash.