What this comparison tells me is that video technology has been standing still, ironically, for quite some time. Not only tech, but the commercial opportunities that could stimulate video innovation as well. VP8 does not have to beat H.264 feature for feature. An open developer community eventually will do that.
Great analysis of VP8 by an amazing x264 engineer. But even with all the issues pointed out, it is a snapshot in time and there are many moves yet in this game begun some years ago. Google just open sourced a free baseline codec that will work without plugins. Could there be any better strategy now while the border around video is permeable? This is a Queen’s Gambit, for sure!