I don't think H.264 is dealbreaker yet. Too few people even know (or care) about coming video standards - the only people I know who even think about such matte

I don't think H.264 is dealbreaker yet. Too few people even know (or care) about coming video standards - the only people I know who even think about such matters are geeks (aka people like you and me). Your point on this being symbolic of internal forces in the product, on the other hand, sounds largely correct.