Yeah the iPod video has a video chip
 
But on the internet I read that the iPhone might go with the Samsung s3c2460 
chip,
That chip has a hardware video decoder on it.
 
But I think another option could be the MagicEyes MMSP2 chip used in the GP2X 
linux handheld, that has hardware video (up to OpenGL ES), and an embedded 
camera controller (maybe usable in the future models with camera, up to 4M 
pixels)
 
http://www.mesdigital.com/english/Products/product_mmsp2.asp
 
I think this chip is pretty opensource since it is used in the GP2X
 
Casper
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