I think its mostly interesting for supporting niche file formats directly, as he says:
"And completing this thought, by choosing something like VLC, with its top-down open source condition and universal approach, the “closing of the loop” from VLC being available in all browsers instantly will ideally cause people to find the time to improve and add formats that otherwise wouldn’t experience such advocacy. Images into Apple II floppy disk image? Oscilloscope captures? Morse code evaluation? Slow Scan Television? If those items have a future, it’s probably in VLC and it’s much more likely if the web uses a VLC that just appears in the browser, no fuss or muss."
This makes a lot of sense for the internet archive.
There are many "lets do it in js because we can" projects, this is not one of those.