I have 1 dead (or "mostly dead") pixel on my display. It's only really noticeable when the area is black, so it doesn't really bother me, even though it's smack dab in the middle of my screen.
I'll give that movie a shot, but from the description it sounds like the movie would be more likely to cure LCD burn-in (or "image persistence" whatever you want to call it) than dead pixels. LCD burn-in can (sometimes) be cured by "exercising" the affected area. Dead pixels are another beast entirely, and I don't think they can be cured by software. At least, I've never heard of it before.
Nevertheless, I'll give it a shot and report my results within a few days. I doubt it'll hurt, anyway.
As for QuickTime, there are plenty of QuickTime-compatible players out there. A lot of people don't understand that QuickTime and QuickTime Player are two very different things. QuickTime is a system-wide service, and QuickTime Player is just an application that uses that service. Any developer can very easily create a program to play movies with QuickTime.
All QuickTime Pro does is add some extra features to QuickTime Player. So if you don't want to pay for them, use a third-party player. Search MacUpdate.
That said, QuickTime Player is the most feature-rich player out there. I always use it over VLC or MPlayer whenever I can, because it's just plain better.