I have been trying to fix this for a long time but for some reason my computer doesnt let me watch 1600p videos on youtube. I dont have a 30 or 27 inch monitor but its just a video. In addition i went to one of my friend's house. He has a 22 inch monitor and he can easly watch videos in this res.
That vid is a bad example, the recording doesn't maintain 30. But anyways, is flash up to date? Have you tried other browsers? You aren't going to see any difference if your monitor is lower res though.