It is really annoying how Canon has crippled 1100D video functionality, they could have given us at least 24p! And also 1080p, but if that had happened there would be no reason to buy a 600D instead...
MagicLantern will be extremely useful for 1100D, so I think it should be given some priority for now:
Since the camera is limited to 720p, we'll need to set the bitrate as high as possible, since we need all the quality and less compression as possible, because everything will get magnified when playing in fullscreen or a HDTV. It also helps to maintain quality in order to sharpen and remove noise from the image on post processing later, otherwise we get extremely blurry videos.
When shooting in 1080p you can get off with some compression artifacts, but at 720p they get too obvious, specially on noisy scenes, where you'll get giant blocks of happy digital rainbow in darkened areas.