Earlier quoted context omitted.
Unfortunately, Theora is just simply inferior in every technical aspect to h264. The decision comes down to quality vs price. Choosing quality for a higher price is definitely not a "dumb" decision, surely you too often buy a bit more expensive product that promises a better quality. On the other hand, choosing a cheaper, lower quality product is understandable as well if quality is not that important. Vorbis, howeve…
In the web, with a lot of youtube-like sized videos, the quality of Theora is more than sufficient. Also, for vacation videos and the like, Theora provides a reasonably good quality. In other words: Theora is already good enough for the "masses". It's not the technological inferiority of Theora that hinders its wide adoption. I think it's that people use H.264 for everything and don't care about the licence and the a…
So it's acceptable to deliver a product you know to be inferior to someone because their content isn't important enough to you? Would you not be insulted if someone said they didn't think your home movies were worth encoding with the best available technology?