File this under "I doubt this will work."
Something must have told the Twitvid team that this is a logical direction to take Twitvid but I don't see it. Broad category social networks have, more or less, been done and will, more than likely, stay the same as they are now for a long time. The best way to compete in social networking is by creating niche communities. Broad category video sharing is simply not niche enough to cut out a following.
Twitvid was and should have been a utility for sharing videos via Twitter since Twitter doesn't currently allow that. I'm sure Twitter Photos, which all but negated the need for Twitpic and others, scared Twitvid into this pivot. But what would have been even more sensible is to, like Photobucket, make a deal with Twitter to handle their official service in an unobtrusively and mutually beneficial way.
Millions have used Twitvid and I'm sure many will continue to. However, I'll go on record as saying that not many of those people will use these new features on Twitvid.I think this move sounds the death knell for Twitvid.