Thanks man. That's great feedback. Perhaps I could play around with the sizing of the video a bit. I try to keep it out of the way of the code so that it doesn't overlap too bad.
I avoid it mostly because it adds overhead to the file size. You can crunch down a screen / presentation only screencast to pretty incredible sizes with H264 but as soon as you mix in live video, you either need to sacrifice its quality severely or put up with large files.