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You know... this should be a "call to arms" for devs. So many times, like when I am out on hiking trips, I shoot high res videos. I would love to send them to people, but shooting in low quality just isn't an option, since often times you can't just simply reshoot the exact same thing a second time. I think someone should develop an app that can cut full quality videos down to Mms quality without touching the original.
Yeah, I don't think phones were meant to send hi quality. Best way is to shoot high quality and convert on a pc to send it. That is what I do. I have a program on my pc called Magic Video Converter. This program will convert just about any format to any other format. I have used it several times to even convert movies down to a smaller size to fit the droid. Works great.