Agreed. If it can't do at least 500 x 300 at 30 fps, it won't look right on a TV and it will look downright crappy on a PC.
Also have to keep in mind the video's usage. If you want to analyize your performance and need a glimpse of a tach needle, hand position, and where the inside front tire ends up, one might want to skip the MPEG stuff for now.