Yes, I think another function for non-h.264 encoding cameras would be great, I'll bet it would probably work with a lot of other webcams too.
I didn't measure latency precisely but just to the eye I could not detect any difference between the two cameras, or with the C920 between the two different streaming methods.
Right, max_usb_current=1 goes in /boot/config.txt. It works only on the pi2 and the B+ models. It causes a second resistor to the USB bus to connect in parallel with the first one, allowing 1.2A to the USB instead of the default 600ma. Of course your power supply will need to be capable of supplying the extra power, it should be rated at least 2 amps to benefit from this. That's the reason they don't make this configuration the default - so you only change it if you have a sufficient power supply.
If you find that your config.txt loses the changes you made to it after you reboot, like mine did, you will need to remove the SD card from the pi and insert it into your PC to make the modification.
This is the "v4l2-ctl --list-formats " response for the C615:
pi@raspberrypi:~ $ v4l2-ctl --list-formats
ioctl: VIDIOC_ENUM_FMT
Index : 0
Type : Video Capture
Pixel Format: 'YUYV'
Name : YUV 4:2:2 (YUYV)
Index : 1
Type : Video Capture
Pixel Format: 'MJPG' (compressed)
Name : MJPEG
vs the C920:
pi@raspberrypi:~ $ v4l2-ctl --list-formats
ioctl: VIDIOC_ENUM_FMT
Index : 0
Type : Video Capture
Pixel Format: 'YUYV'
Name : YUV 4:2:2 (YUYV)
Index : 1
Type : Video Capture
Pixel Format: 'H264' (compressed)
Name : H.264
Index : 2
Type : Video Capture
Pixel Format: 'MJPG' (compressed)
Name : MJPEG