So I enabled CDMM_USB_VIDEO to "both" and what I got was this video icon appearing in the player menu and I was able to browse my iPhone for Movies, Video Podcasts, etc. No video from it, just sound. So as Shawn pointed out, a cable is required to go from the replaced AV USB port to the CIC unit. Not that I ever doubted him of course
EDIT: I don't suppose adding a media snap-in adapter is going to magically make the video appear?