That's pretty much true, distribution for content will be a nightmare -- but that's due to the content-distributors being crazy and not so much due to the device being crazy.
So, like, just to be totally clear, the business which doesn't have this problem with videos is porn. I don't know how interested they are in Project Glass in particular, but if Project Glass becomes a way to shoot amateur porn, you can bet that there will be web sites which cater to it. Distribution rights problems will not be a main concern because it's just not a general concern in that industry -- at least, it doesn't get in the way of the day-to-day transmission of the vast amounts of data.
So, like, just to be totally clear, the business which doesn't have this problem with videos is porn. I don't know how interested they are in Project Glass in particular, but if Project Glass becomes a way to shoot amateur porn, you can bet that there will be web sites which cater to it. Distribution rights problems will not be a main concern because it's just not a general concern in that industry -- at least, it doesn't get in the way of the day-to-day transmission of the vast amounts of data.