My photo collection is organized into flat folders list where each folder represents either an event, collection or month. All of the media files (photo & video) are named in chronological order using the tool I wrote; also timestamps of original videos are copied over to converted ones. This all allows me to easily sync it with either iPad/iPhone and Google Picasa. You can download tool I use from here: https://github.com/anton-iermolenko/Photo-library-toolkit/downloads
To convert 1080p videos shot from our Canon DSLR I use XviD4PSP. Free, easy to configure and good results.
To access our family photo albums stored on Picasa (full size photo and video) using Web Albums app on iPad/iPhone. It supports videos as well and finally I don’t have to use iTunes to sync them + there I got back plenty of space back.