IPhone – stream with Airplay from the iPhone to a compatible 3rd Party device

I've seen that on a couple of them, and the problem seems to be tied to IPv6 support. Mine would drop connections randomly, sometimes requiring a reboot of the AirPort Express before it would return to the network.

Turning off IPv6 entirely in the Network Control panel of our Macs seems to have fixed it. I can stream music to it for hours now without problems, so give that a try.

Didn't intend to answer my own question, but I found this March 2011 Bloomberg article:

Apple Inc. (AAPL) is weighing an expansion of its AirPlay audio service to include streaming video from an iPhone or iPad to television sets, according to two people familiar with the project.

Under the plan, Apple would license its AirPlay software to consumer-electronics makers that could use it in devices for streaming movies, TV shows and other video content, said the people, who asked to remain anonymous because the plans haven’t been made public. Apple now only licenses AirPlay for streaming audio. Devices that could be used for video may be available this year, one of the people said.

So apparently the answer is "not yet, but maybe in the future."