"a divide between which video format can be viewed in which browser. H.264-encoded HTML5 video can be viewed in Apple’s Safari, Google’s Chrome and in the upcoming Internet Explorer 9 browser from Microsoft. Meanwhile, Ogg Theora playback for HTML5 video is supported by Firefox, Chrome and Opera. Google hopes to stem that divide by making VP8 open source, providing a high-quality and open alternative to existing codecs. [...]
While an open-source VP8 could end concerns about H.264’s licensing issues and Theora’s quality, questions still remain about whether Google can provide a video standard on which everyone can agree. Microsoft only recently announced support for H.264 for HTML5 playback, and has never been quick to adopt open standards. And Apple, which has been the driving force behind HTML5 video and H.264 playback on the iPhone and iPad, might not be keen on the idea of switching up its codec support on those devices anytime soon."
Update: via @tgaul, iPhone OS 4.0: Now With Added Evil by James Higgs agrees with Steve Jobs on many points but says that Apple will make exceptions on certain development tools, invalidating Jobs' claims. He concludes that:
Instead of a confident Apple heralding the next stage in the iPhone’s development as the best mobile OS on the planet, Thursday’s announcement ensures that Apple now looks scared of Android, and is prepared to act rashly to defend itself. Rather than take on Android with superior features, better build quality, better usability and aggressive pricing, Apple shows its anxiety by hamfistedly trampling all over the people who helped them become the number on mobile app platform in the first place: the developers."