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Hosting companies these days charge rates close to their costs. They make their money off of storage charges.
If you are just starting out, virtual is fine, as long as it is a quality provider who does not overstuff their boxes.
When you are ready to go dedicated, make sure that it's managed dedicated, or you have significant knowledge about what to do when your stuff goes down or DoS'd.
Most of the time, you should be able to mail discs to your host to upload on your behalf.
Plugins should never be used as the base of your content. They are strictly filler. What are you gonna do when your plug in provider goes out of business?
Your video requirements seem to be based on your personal needs, rather than what will please your customers. This type of thinking is going to bite you in the ass. Server your customers first, regardless of whether or not it's personally convenient for you.
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