I may be in the minority here but Google did the right thing here and ultimately, with the role that Google plays in the delivery of video on the web, they are going to be able to exert quite a bit of influence on video delivery. The very fact that they control YouTube which must provide at least half of the video on the web is something worth considering when you think about how Google can manage to push WebM. The very fact that the web was built on collaboration and openness should make support of an open spec no surprise as well. Add to this the fact that the group that controls the H.264 standard is widely known as a patent troll and you begin to see why support for an open source and patent free spec and format is needed. Let's also not forget that WebM will be more widely supported across the browsers so regardless of how pervasive H.264 is, if it won't play in the browser, it's utterly useless as a standard for web video. The browser makers have total control here and if the majority aren't going to support H.264 while they support WebM, H.264 will cease to be the standard at some point in the future.
As a reminder, all browsers expect Safari will be able to support WebM (IE won't have support built in - it will require you to install the codec). Given that Adobe is adding WebM support to Flash, it becomes more apparent that WebM will have much greater reach and support.
Just because something is the standard now doesn't mean that it has to be that way forever. It's beliefs like this that allow terrible technology like Flash to continue it's dominance on the web.
Let's also not forget that Firefox has never supported H.264 (and they never will) and no one seemed to care despite the fact that they have a considerably larger user base than every browser expect for IE. Add to this the idea that the HTML5 spec doesn't specify a format that should be the standard and the very notion that H.264 support is required is ludicrous. Yes, it quite widely used but if Google can manage converting videos on YouTube to WebM on a large scale, so can everyone else.
And honestly, what does this news have to do with the "Flash feud" as he put it. He's making it sounds as if it's H.264 or Flash. In fact, he's making it sounds as if H.264 is synonymous with the HTYML5 spec which is just ridiculous.
Sorry, this post is poorly organized - I got going and didn't stop.
EDIT:
This is worth reading.