No, it supported very high res screens too, but it required special screens such as the A2024 (15" 1024x1024!) Later on there were also RTG graphics cards available.
> Did they have an equivalent to QuickTime and Cinepak in 1992 to play video clips?
The Amiga's graphics were ahead of its time, but the tradeoffs they chose proved very unsuitable for video playback applications (specifically the planar nature.) There eventually did exist video playback tools, but they either assumed the presence of an RTG card, or post-dated the death of the Amiga by several decades.
I looked up the A2024
The monitor is quite unique in that it contains an internal framebuffer which is controlled via the RGBI lines of the video port [...] The monitor manages to achieve the high resolutions by effectively buffering four Amiga screens, whereby each screen displays a portion of the overall picture. Because of this, the "effective" refresh rate decreases to around 10-15Hz (software configurable). [...] It seems that the monitor by be able to individually refresh the separate quadrants of the screen, as the quadrant which contains the mouse cursor appears to be updated more frequently
What an amazing hack! Reminds me of the lengths people went to add larger external displays to the early 9" Macs using SCSI graphics cards that basically re-implemented QuickDraw