"This license is fundamentally incompatible with software freedom. It requires developers to restrict how their software can be used, and to collect royalties in many situations."
And that is what it is all about. H.264 imposes end-user licenses and if it gets entrenched, freely redistributable browsers would lose. The argument against dropping H.264 is basically "why switch formats when what we have works?". H.264 does not work for free software. It's as simple as that. If HTML5 video suffers in the short term, that's the price we'll pay - at least that's the FSF's position.
>Everyone points to the GIF fiasco. The net result? PNG was born. If the screws are ever put to us on H.264, you'll see exactly the same thing, only quicker.
Why wait until a fiasco?
> Computing power being what it is today, the effort of re-encoding every video that exists on the Web is actually not that hard of a problem, and is certainly in the realm of what Google can do today, let alone 5-10 years from now.
Seriously, you're arguing against yourself here. Besides, what of the omnipresent 'hardware decoders' we keep hearing about?