In some respects MPEG-4 AVC and VC-1 are not superior to MPEG-4 ASP (what DivX/Xvid are). AVC is very computational expensive for both the encoder and decoder. The availability of decoders is another issue. Also container support is an issue. The only AVC videos I've seen are either in an MPEG-4 container (.mp4) or Matroska (.mkv).
VC-1 has the issue of having poor tools. Encoding in a MS program isn't what most people who encode would want to do.
ASP+MP3+AVI works for the majority of people, and having your XBox 360 or PS3 support it means a lot less hassle.
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@Odd TSi
In some respects MPEG-4 AVC and VC-1 are not superior to MPEG-4 ASP (what DivX/Xvid are). AVC is very computational expensive for both the encoder and decoder. The availability of decoders is another issue. Also container support is an issue. The only AVC videos I've seen are either in an MPEG-4 container (.mp4) or Matroska (.mkv).
VC-1 has the issue of having poor tools. Encoding in a MS program isn't what most people who encode would want to do.
ASP+MP3+AVI works for the majority of people, and having your XBox 360 or PS3 support it means a lot less hassle.