it seems like you can only stream/control audio from your iphone's library, while Netflix is the only video source/app available. can anybody confirm if video can be played from the iphone's library?

Ive not done, but iTunes video is capable of TV-out so it should work.

I've gotten Slingplayer to work.

can anybody confirm if video can be played from the iphone's library?

Yes.

I can confirm as well. Start the iTunes video on the iPhone and then touch the Apps icon on the radio. I have done this a lot.