Using Intersection Observer for scroll-based video playback is optimal because: 1) It allows precise control over when videos play based on visibility thresholds, 2) It efficiently handles multiple videos without performance impact, 3) It automatically pauses videos when they scroll out of view, saving resources, 4) The threshold values can be tuned to create a smooth user experience. The code shows how to implement this with a 75% visibility threshold for playback, ensuring videos only play when substantially visible.