Initially, I found it strange that some companies rejected the idea of mandatory, but non-exclusive, support for Ogg/Theora in the standard because of the possibility that unknown patents may apply.
The formats they suggested instead are definitely covered by known patents and are, like every format in the world, still exposed to the possibility of other unknown patents...
But this blog post makes a good point I didn't think of before: A lot of companies are already exposed to the risk of unknown patents for the codecs they support already; continuing to use those codecs doesn't add any new risk but adding support for new codecs does. For them it's both implementation effort and additional risk for no reward, given the similar quality of the codecs in question. So maybe it's not as crazy as it first seems.
(At the same time, it isn't crazy for the people who care about free standards, and who haven't invested in the known-patented codecs, to push for Ogg/Theora.)
Until recently it seemed like adoption of web standards was at the whim of the browser makers (and MS in particular, due to their market share, though AFAIK they don't have much involvement in the codec dispute). I wonder if a huge site like Wikipedia, which doesn't depend on advertising hits, can change the balance somewhat. I imagine if Wikipedia say "we're only supporting Ogg/Theora" (or whatever) then it will push the browser makers to support the format, whether they like it or not, to avoid losing customers who want to view the content.
Until now the formats sites use have been based on what works in the popular browsers (and mainly IE), but having the equation driven from the other end (within reason) seems like a more healthy situation. (I mean, cripes, we're still suffering from IE's late support for PNG alpha channels due to all the people still using IE6.)
OTOH, maybe Wikipedia will put the videos up in a way which suits all the browsers. (I hope not as if they don't push it I can't think who else will and it'd be nice if there was some single, agreed format and embedding. I don't personally care which format it is.)