It's also the codec used on the Xbox360, the PSP, the PS3, and other pes of consumer electronics. It turns out that to reach the largest audience of consumer electronic devices and computer, H264 happens to be the best choice.
Video production workflows let content producers save as h264 videos.
The adult industry is using h264 videos on their web sites to serve their content to portable "more personal" devices.
I'd say h264 is pretty entrenched now.
Any user can install Flash. Apple is not depriving the user of anything.
If Google pulls the plug on H.264 on YouTube, they are depriving a lot of users of access. Mobile users (not just iOS users). Wii Users. Blu-Ray players/Web Top boxes.
Will it all eventually get straightened out? Yes, one way or another. But the sudden shift in strategy seems like Google isn't going to care one way or another to who they put out to pasture in order to establish a new de facto standard. It's very 1990s-era Microsoft of them.
Apple could support flash for nothing... Adobe has tried to do it for them, with both direct flash support and this conversion tool. Apple is making a purely idealogical decision.
http://venturebeat.com/2010/09/09/apple-loses-game-of-chicke...