I recently discovered I can watch many of the games broadcast by ESPN on ESPN360. Most popular network shows are streamed free from the network sites or Hulu. I can watch academic lectures in their entirety on YouTube. All on my Mac.
As a user, I really don't care what the underlying tech is, aside from the initial annoyance of waiting for Silverlight to install itself (which I did because it was the only way to watch the Olympics broadcasts).
So "video and audio is still an issue" is an understatement. It seems to be the main justification for these technologies. Once I can watch all of this content in my HTML5 browser with no add-ins, I'll agree with you. Until then, I am perfectly happy to watch video delivered through my browser by Flash, Silverlight, or whatever other technology as long as it's not a pain to install and plays nice on my computer.