> there is nowhere near enough processing power in the ARM chip to simply scale video from 320x200 to full screen without help from the GPU. I accidently triggered this with mplayer a few weeks ago
The fact that MPlayer cannot do it isn't evidence that the CPU is incapable. Are you sure that MPlayer is actually utilizing everything that the ARM core has to offer? SIMD instructions etc?
It might just be that MPlayer on ARM is using some generic C scaling routine that nobody has bothered to optimize, because common x86 desktops are all running another assembly-optimized implementation.