This is a selfish move by Google to put the screws to Apple. There's no question it's going to hurt users in the short term because they'll have to rely on Flash to playback H.264. And users are going to be using Flash a lot because the people like me who are in the business of encoding and hosting video will not be switching to WebM anytime soon. The millions of iOS devices and the higher ups who own them will dictate this for years to come. This is where your idealism meets reality.