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Flash will not use less bandwidth for a given video quality. You can cut the quality to save bandwidth, but Flash is not a magic bullet to save bandwidth. Really, it might mean you use more, I feel surfers are more likely to watch a Flash video.
I can't say if Flash is a bigger risk of being messed with by cheaters. Certainly, though, it would be harder to notice what is happening. The player is a .swf file and Action Script is a powerful and complex language... The Flash would already be there and could probably even be pre-set to do some nasty cheat months down the road.
I wonder if there could be a market for a known safe player whose checksum could be verified on submission etc.
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