Hi There, The video block is just a fancy image block that is taking a screenshot of a frame from the video and adding a play icon on top of it. If you take a screenshot of a frame on a video that you would like to link to, and then use an image editing program to layer a play button over the screenshot, you can upload that screenshot as an image and then link to the video from that image. This will give you the same look and function as the video block, but without the limitations of only being able to link to youtube and vimeo.
I hope this helps! Let me know if you have any other questions.