[risotto]

The only problem I see is the iPhone and iPad.

All other browsers are open enough to get native support or have a plugin. Android phones will have support. Who knows or cares what happens on WP7...

Google is taking a stand. It is annoying that Google is removing existing support for h264. It will be annoying if Apple is completely against adding a software WebM decoder for current gen iOS devices, and ignore hardware solutions on next gen ones. But both companies are free to do whatever.

I also think this will have negligible impact in the real world. Youtube will always work on whatever. Content providers can just upload stuff there if they don't want to manage multiple formats themselves.