Coupled with the Market update that was announced and subsequently leaked earlier today, Google released a new version of the Videos app, previously available only on certain tablets. Because the new Android Market adds support for movies, among other things, the much needed update to Videos opens up access to devices running Android 2.2 (Froyo) and 2.3 (Gingerbread).
Now to some bad news: as suspected, if you are using a rooted device, you will be able to run the Videos app but won't be able to play any content through it. Paranoid Google is paranoid, some meme lovers would say.
It's interesting to point out that if you don't install the Videos app, the new Market will simply redirect you to YouTube in your browser when you press My Movies.