FWIW we currently have this in the AV1 codec which is royalty-free and has a better quality/size ratio than h264.
AV1 might eventually get there, and that would be awesome if it does, but H264 has been around long enough to have a substantial "first mover advantage" over AV1.
I definitely want AV1 to become the "video standard to rule them all", but once H264's patents expire I think I'm also ok with it being the standard as well.
I think I get your point though; if the Raspberry Pi is not adding chips for native H264 decoding, set top boxes and other SBCs might drop it as well.
https://news.ycombinator.com/item?id=38083588#38088009
TL;DR It’s neither patent free nor ”patent safe”.