For a smaller channel, nobody really watches the highlights... Although these short, edited videos well describe the channel, for smaller channels probably better than the most recent broadcast, and gives an overview if the streamer has made a good job with the highlight.

I would like the option to select a highlight as the featured video (Instead of the most recent broadcast) as the featured video when the user lands on a streamer's page.

If the user likes the highlight, he or she will probably watch more videos. Maybe when the highlight is played through, then the most recent broadcast could be shown, or you could have two videos on the landing page as an option, one with a highlight and one with the most recent broadcast.