Customer service application
Video dating
The real problem here is always latency. Even if you're not doing Onlive-style stuff, videoconferencing is hard. I doubt the standard Flash toolchain (webcam + Flash + etc) can do it all with acceptable latency. Current Justin.TV only works IMO because you're communicating via chat in one direction and via video in the other; a real two-way communication link gets really awkward even at 500ms latency. When people do videoconferencing, they expect it to be like their cell phone, not like a call to the moon.
We at x264 have been working on this for some time for... a certain company that wishes to stay anonymous. Right now you can get down to about 9 millisecond total end-to-end latency for 800x600 video (not counting client and network latency, just server-side), which works pretty damn well.
But dropping encoder latency isn't enough; you need to have a system built around it that has tolerable latency. VLC, for example, doesn't; it's not made for two-way communication, and so it has a 5-15 second internal buffer. It ends up requiring a lot of custom-rolled toolchains, even if the basic libraries already do what is necessary.