allow for looping recording with a "save this bit" feature.
It would make this useful when I'm doing QA work. Configure: 1 minute chunks, keep the last 5 minutes. Record. Recording auto-throws-away stuff after 5 minutes. When something "interesting" happens, I can pause, edit -> "freeze" sections of video, export little sections. At end of recording, something with "here's the video" and "here are the time markers of things" (clip start, or text) -- make it easier to find the bit that you need to watch when consuming a bug.
I've done a look around for what software QA folks use, and the closest is blueberry flashback, and the interface is horrible. You could expand your user base greatly with this feature.
Sunny Gulati commented
Amending / explaining above -- I don't know if your hosting solution provides it, but if uploaded to youtube, can generate youtube links of "start playing from this position". End of recording, anything not frozen is discarded when exported.