So I tried Google Hangouts. It's marginally better. But it's still awful, and odds are about 50% that one or the other end of just fails to work (suddenly wants to reinstall the plugin, or just plain refuses to recognize the camera).
It's just incredible to me that a decade after I had reliable, working video chat, things appears to have gotten steadily worse, not better... I have 10 times the bandwidth - or more -, for example, both up and down.
Here is an report sample: http://netalyzr.icsi.berkeley.edu/restore/id=example-session
What makes FaceTime incredible is that no one else on the planet can make anything even close to adequate in that space.
It can be mind boggling to cycle through Skype, Lync, Google Hangouts, and every other piece of chat software on your computer, all failing in bizarre ways, only to think, "Oh yeah. Let's try FaceTime" and have it work.
Facetime is what makes it possible for me to stay in touch with my family on the other side of the planet, and that's even if I'm sitting out in a park far from Wifi. It just works, and even if it hiccups once in a while, the reliability is high enough that you just shrug it off with the confidence that it will recover. This is on LTE with good reception.
So, perhaps Skype and GV are suffering from over-extended networks? It must be hard to justify investing in better network infrastructure for a free product (or when your revenues are minimal). On that note, I don't get the impression that BlackBerry's network has much of a problem with network load these days...
In contrast, a multi-way video chat on http://appear.in has much more stable audio and video quality, somehow doesn't require half of my CPU, and doesn't even require a plugin.
My team is distributed, and we use hangouts every day, so this has not been a one-time experience, and it has been like this for years at this point.
http://www.androidcentral.com/google-moves-hangouts-vp8-offe...
Instead of hardware accelerated h264 (almost all chipsets have hardware decoding/encoding of h264), they use their own VP8/9 - which is decoding/encoding on CPU
Also the reason why Google Glass can't do Hangouts - not powerful enough for software encoding.
They should just use h264.
There's also no way to 1) hide people's avatars: I really don't need 20 visual reminders (one for each message they've sent) of who I'm chatting to; I don't even need 1! 2) hide the emoticon selector: who uses this rubbish? 3) adjust the "people you hangout with": there are 6 tiles of faces (most of them rigmarole-distributing frequent emailers who suck) and the 6 same people are repeated in a list of 10 "people you hangout with"---the 6 same people are repeated in a list of 10 "people you hangout with".
Google...