Scaling has not been a big problem so far, because the scaling in my experiences is usually very good, and you certainly don't lose any information or slow anything down by having a video scaled up. ie it's just like moving close to the screen to better view a squinty little picture.
Here is a auto-embedded
which is 240 pixels wide....it looks OK to me when scaled up to 400 wide.
Clicking on the link above will this open a new window with the video playing at native size. This is another option for you ... just specify "open in new window" for your link (ie target="_blank")