On one side, I can certainly understand why Apple went with this, even if it drives me nuts that Safari@iOS can't do inline play at all (because it prevents nice artistic stuff using a canvas overlaid over a video element, for example), even if the play action is user-initiated.
On the other hand it takes away a LOT of flexibility - seriously, I don't want to do 50MB GIFs for animated background or weird JS trickery when I can use a 2MB video for the same effect.