Even with 2.6 you can not watch videos embedded in web pages. The browser on 2.0 is the same as the browser on 2.6. If you have a 2.0 and are serious about updating, I am sure some one out there that wants homebrew will trade you their 2.01+ for your 2.0 plus a bit of money

I would not upgrade, I would stay at 2.0 but thats just me... you can do what you like.