I'm really interested in this debate. I can see some huge benefits to allowing the use of things like this, and I genuinely believe it is the way things are going to go over the next few years. It may not be ideal, but the alternative is less so.
Regarding conversions, I can't remember any names just now, but I know when I did A level ICT a couple of years ago, we all used a couple of websites which between them allowed audio and videos to go to and from pretty much any format out there.
Another idea, although it's one to wait for at the moment, is that YouTube allows uploads from phone formats directly, and in 'YouTube Labs', there is currently an online editing package. Certainly one to look at in the future once it becomes a little more established.