Infuse 2 does not show videos already on my iPod Touch 5

Okay, I'm sure I'm probably just an idiot and totally missing something here, but why doesn't Infuse 2 list the videos that are already downloaded onto my iPod?  I have several videos I purchased through iTunes and downloaded to my iPod, but Infuse 2 doesn't show any of them.  My only option is to press the "+" button to add a video, but then it wants me to connect my iPod via cable to my PC and sync with iTunes.  I don't want to do that.  I just want it to show/play the videos I already have on my iPod.

Also, when I use the "+" button to add videos to Infuse 2, is Infuse actually downloading the videos to my iPod?  Because I don't want it to do that.  I just want it to list the videos it finds on whatever streaming/sharing/wifi device, and then stream them when I want to watch them.  I don't want to download the videos as I'm already out of space on my iPod.  Thanks.

Sorry for the confusion.

Unfortunately Apple doesn't allow 3rd party apps to play purchased iTunes content, so for now Infuse will hide these videos from view.

We're hoping Apple opens up these APIs in the future to avoid this type of confusion.

Oh.  So, if most of my video library is iTunes purchases, then I'm not going to be able to watch most of my movies via Infuse?  Why does Infuse have an option and instructions for syncing with iTunes to add movies to my Infuse library?

Here's my situation and what I'm trying to do.  Can you tell me if this is going to work with Infuse or not?  I have a few iOS devices that are pretty much all out of space, and I cannot download anymore movies onto them.  And streaming my iTunes purchases through iCloud is chewing up my data plan and causing excess overage charges.  To allow me to watch my entire movie library wherever I am and not have to worry about using up my data, I just purchased a 2TB Seagate Wireless Plus external hard drive.  My plan was to load up all my movies and music on the Wireless Plus and then use Infuse to connect to it with my iDevices and stream any content I want to watch or listen to.

If Apple doesn't allow 3rd-party apps to play iTunes purchases, and iTunes cannot stream my iTunes purchases from an external storage device, then how am I supposed to make this work?  Can it work?  Otherwise I just wasted $200 on a hard drive and $6 on Infuse.