Just checked this out, i like the idea but have two issues.
1) The movies are crap, just girls on their own.
2) The movies take an age to download
Other than that i appreciate that you are probably having to convert your porn clips into qt format which is a pain in the ass.
I think that the way forward is to either create a porn community site whereby users can re-encode and categorise their current porn collections and upload to a server. Or someone needs to create an mpg player for the iPhone so you can just browse regular porn sites.
I'll think further about this first idea as i am a web developer, hopefully some clever chap will sort out an MPG player first though.