I didn't think there was enough bandwidth on the SPI bus to be adding on extra CPU's, especially for something as CPU intensive as playing video.
Personally, I don't see the point. The DS screen is only 256x192 pixels, why bother trying to show an AVI that has a greater resolution than that? And what's the odds on it only being able to play back a certain codec. I'll stick to converting on my PC, thanks.
EDIT: Actually, thinking about it, they've probably just stuck on a chip from a portable media player that can handle those formats, then chucked it down the SPI bus in a [email protected] format.
EDIT2: Apparently it's based on the Acekard2 with an extra FPGA
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