Most hobbyist multi-rotor flyers use an analog video feed over 1.2ghz or 5.8ghz radio, which has very minimal lag. Converting the video to a digital signal typically introduces 500-1000ms of delay, which is enough to make flying by the camera difficult or nearly impossible. Transmitting the signal over an IP switched network would likely introduce more lag in addition to the digital conversion.

Ultimately it will depend on which you value more-- response time or resolution.