Two things have changed:

The 3.0.2 update and I'm now on-demand 1.7 GHz. A week or two ago I had tried streaming via freeTether and aside from starting, then pausing for some time to let the buffer get ahead (even with progressive streaming enabled)in order to watch a movie.

Music seemed to be ok, but I pretty much gave up on trying videos.

Just tried several different videos and all stream perfectly smooth, no lag, hiccups, stutters etc. Pixel rate isn't perfect, but for all intensive purposes, it's watchable.

I don't recall any recent updates to the app (maybe I did and forgot).

Glad it's working 100% better