Same thing happened to me. I gotta admit, I am kinda glad it isn't just me. I thought I was tripping or something. I even rented a movie and couldn't get it to play. My $ was refunded though. I asked the Video app support team, why did I have the Google Videos app after the Touchwiz update, they never answered. They did say you have to have the Market update to watch Movies on the Tab and that it should be available soon.
Here is part of the last email:
Hello Henry,
If you don't have the current updates necessary to obtain the 'Videos' app
by Google Inc, then it will not be possible to watch Android Market Movies
at this time.
Latest update for the Android OS on your device:
Gingerbread 2.3 phone / Gingerbread 3.2 tablet
Settings > About Phone > System Updates (check for any available updates)
Latest Android Market update
3.0.27 phone / 1.0.28 tablet
Then download the Videos app from the Market
https://market.android.com/details?id=com.google.android.videos
I do apologize for any inconvenience this may have caused. If you have any
additional questions or concerns, please feel free to contact me.
Regards,
Gwenevere
The Android Market Team