The obvious solution of course is to work together with master teachers and constructively critique each other until everyone is an outstanding teacher. If we had money, time, and patience for such an endeavor we would be doing it.
Some companies suggest schools should implement a video evaluation system. I don't think a video is any substitute for an actual live person in the room and therefore shouldn't be used for evaluative purposes. I like the idea of working with colleagues in a constructive manner to improve teaching practices.
There are many methods that don't involve direct observation - LASW - PLC - Lesson Study - COP - Reflective writing, blogging, twitter, etc....But I think this video stuff could be one of the many tools teachers can use to improve their own practice. We just don't need to pay for it.