Someone needs to make an app for this. VLC is widely known as one of the best and easiest to use video players and it would be a shame for it to not make it to the Android Platform.
I'd make it myself if I knew how. I wouldn't even know where to begin.
If you are a developer, and you make VLC Media Player.. you can pretty much GUARANTEE a spot at the top of the most downloaded list.
On another note, if VLC is ever released on Android... post it here to let us know.