I think the main difference is that Veotag is a web application. They host the videos online and you can browse them like Youtube.
While your product has more functionality, it's difficult to get running because it requires Java. I think the social or "Web 2.0" aspects of Veotag makes it somewhat more useful.
As soon as juwo can control Flash player, I plan to create a Best Of Youtube website, where people can juwo videos on youtube, and share them. Please look at the Heather's blog American Idol demo.
(I hope that didnt sound arrogant).