This idea is shaping up. We might end up running with it.
Interestingly, the co-designing group might not be much of a "team", in the traditional sense. It's probably best for us to do it with a more ad hoc structure.
And, yes, the idea is to iterate. Goes with Design Thinking.
As another idea, you might try installing Moodle on the instructor's local computer and suggest that they experiment.Having done it, I must say that this might be a bit much for the people I have in mind. It requires a very different set of skills (and security features).
I don't do any H5P. For me, I am not sure that it offers the right cost-benefits. It takes more time (cost). I prefer producing standard videos (as you have seen). H5P is "a difficult beast to tame." If your instructors are good enough to master H5P, they can probably master Moodle's quiz, forum, page, URL, and assignment resources.Interesting perspective! Perhaps leading away from the basic idea... although, it goes well with a central theme, here.
So, as I've said, we're noticing an increase in teachers' use of H5P. People who claim to be "technically illiterate" leverage it for excellent pedagogy. As I keep putting it, they appropriate H5P without asking anyone for permission or help. They might eventually ask for a bit of support with advanced use, especially when it comes to choosing content types. Yet they don't require the type of training we end up doing for Moodle.
Of course, H5P isn't a Moodle feature. People can and do use it outside of Moodle. Which is why we get people who ask us for solutions to share H5P outside of their local Moodle instance. (A shared Moodle instance is a possibility... raising issues.) Similarly, during the forced shift to online learning, a bunch of teachers in Ontario colleges and universities were using eCampus Ontario's Pressbooks instance to create thousands of H5P modules. Based on this demonstrated need, Yasin Dahi created:
https://h5pstudio.ecampusontario.ca/
(It now exists as part of https://learnful.ca/ and https://libretexts.org/ )