The argument for OGG is that the codec used for <video> should be available free of charge and without patent worries. OGG Theora is behind other video formats specifically because it avoids the use of patented methods.
I think that OGG's limitations shouldn't be judged too harshly given its rate of improvement and the level of video quality we have standard now.
No standard codec means that site owners can't be sure that a codec will be supported so we're back to using Flash or Silverlight. The only hope is that Safari's small share will mean that site owners go with the better-supported OGG, after which we get a consensus and a decision on the <video> spec from the W3C.
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