The blame for this sits squarely on the w3c for their efforts in trying to replace flash by letting the content companies dictate standards for encrypted playback. If they had held fast, we could have forced the companies to do their key management in something like WebAssembly and avoided this gatekeeping mess.
No, if the Director had overridden the majority of the membership, the browser vendors would've shipped something anyway, and the YouTubes and Netflixes of the world would be using it anyway.
It's sub-optimal, but I don't think an optimal solution actually existed. A standards board divorced from reality is no better than no standard at all.