You can burn iTMS video files...

...just not in iTunes. I wanted to clarify the issue surrounding burning videos from the iTMS that C.K. briefly touched on in his review of the new service. Basically: you can't burn the video files to a CD or DVD in iTunes, whether just a data backup or otherwise, but burning them straight out of the Finder works just fine. Going up to "Show Song File" in iTunes or using the shortcut cmd + r will reveal video files in the Finder, in which case you can burn them up yourself. The one thing it appears you cannot do is burn a disc that is playable in a set top DVD player or other computer – you're  restricted to only creating backups outside of iTunes. C.K. noted that this is probably due to how long it would take to recompress the video into DVD-ready MPEG-2 files, but I think it has more to do with the deal Apple had to make with the TV networks.

I personally feel like this is a lame restriction. We should be able to burn a backup of our purchased content from within iTunes, instead of going through extra steps and hunting through the Finder.