People record things for certain reasons. Mainly, to be able to keep an important memory they can play back on. These devices are important because people can show others something funny that has happened or something important such as, your childhood. Its good to be able to look back on childhood memories. If we weren't able to record certain events, then we could lose memories that we want to keep.
I don't think people generally know how to make proper videos. I think they make them just to make them for laughs later. Like myself, most of the videos on my iPhone are pointless videos that I don't really need. It's just there to laugh at later with my friends later and it's basically wasting space in my phone. A good way to make a video is with an actual video camera and is properly handled. The things that would be recorded would be for important reasons specifically.
I consider video recording a kind of literacy because you can learn things from certain videos. On YouTube, there are many videos people put up that teach you how to do things. You can basically type in "How To.." on YouTube and find what you need to find to learn something. I don't think a communication major needs to learn how to shoot and edit a video because not all communication departments require you to know that. Some forms of jobs with communication could be in front of the video and you don't have to worry about how to work the camera and how to cut and edit it. There is usually someone else with a different major that needs to know that kind of stuff.
Home video helps out with the expansion of communication because it helps us learn about other cultures. If people weren't able to travel to other countries and record interviews with people or what their culture is like, then we wouldn't be able to learn about it. We could learn about it through writing but not actually be able to see what it's like.