This question got me thinking and your jsfiddle was useful in solving this (albeit not for IE as it doesn't implement the poster image correctly).
Basically combine what you posted, set the required poster image as the background image of the video element and specify a 2x2 transparent image as the actual poster image.
e.g.
and
video {
width:305px;
height:160px;
background:transparent url('poster.jpg') no-repeat 0 0;
-webkit-background-size:cover;
-moz-background-size:cover;
-o-background-size:cover;
background-size:cover;
}
I wrote a bit more about it at HTML5 Video and Background Images.