The Instant View Editor uses a three-column layout, so you really want to use it on a desktop screen that's wide enough. Sorry for the inconvenience.

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Issue #1

You've put a lot of effort into this, so good job!
Yet, I would like to suggest that this should be an unsupported element.

Src attribute on video can only be used with these formats: MP4, WebM, and Ogg.
m3u8 is essentially a text file, so it cannot be used as an src on a video tag.
It can be used inside <video> with <source> tag, but it seems a bit beyond IV template scope.
And anyway, rules imply a proper src directly on video tag, which I believe is an indication that it should be an actual link to content, not to a playlist file.
If it is not possible to represent the widget as an iFrame, but it is possible to get a direct link to the video/audio, use this link to generate a <video> or <audio> with the correct src attribute.
🧿 Maksim³
First of all, m3u8 CAN be used inside of video tag. For example, MS Edge supports it as well as chrome for android and Safari: https://imgur.com/zjMrBIt https://imgur.com/cwixQC9 https://imgur.com/yfWLVem
You can verify it in your own browser and see if it works or not (also you can open it in VLC or smth to make sure the link is working fine), here's the sample .html file: https://hastebin.com/ewowirurox.xml

m3u8 files on this website are just a compilation of different qualities of the same video. So they are not playlists here but just files with links to actual videos. And I don't see any reason why telegram won't add this feature later, following other browsers that do support it.

Nevertheless, both @unsupporting and marking it as a m3u8 file will not generate an IV and won't show it to the user.

And in issue #2 you say that "template will create a kinda broken IV", when it's not true. It will create no IV for this page as I described before.
Declined by admin
Marking m3u / m3u8 as unsupported or using a direct link to it are both valid methods to handle these. There is no preferred way. Nobody is forced to manually extract the m3u / m3u8 link to set the src.

It's up to the template creator how to handle this. In both cases there won't be IV.
Type of issue
Author added their own content
Reported
Mar 9, 2019