Another interesting point:
While Theora/ ogg is being incorporated as a standard for internet video (it's equivalent to h.264 now, by the way), it's main draw is the fact that it's an open standard while the MPAA codecs are not. Google recently bought On2, creators of the VP8 codec, which reportedly reduces bandwidth needs for a given video quality by 1/2. By all accounts, they will open up this at the end of the month, making any implementation royalty free and unencumbered by licensing (standard FOSS terms). The real test is whether Apple supports that codec. My strong suspicion is that they will not for the simple reason that it is a.) open and b.) not theirs.
The reason that Windows seems to have stalled is not that it is less advanced or that less work went into it; quite the contrary. MS employs some of the best programmers in the world, and a lot of them at that. The reason that Windows seems to be advancing more slowly is the fact that development no longer needs to progress on the user side because adoption is forced by their near monopoly; development now is focused on preventing users from stealing the software. The fundamental goal of any modern seller of copyrighted materials (in the broadest possible sense) is the prevention of unauthorized use.
Apple would like to be the middle-man for media consumption, and to accomplish that they need a rock solid pipeline. Apple wants a closed, proprietary system that they can control for the purpose of guaranteeing that any media that they sell is used only in the manner that they prescribe. This is the model preferred by studios and record companies, which fundamentally depend upon outdated copyright laws (see Richard Stallman's take on this).
Others on this thread have mentioned that Apple is changing the way that we live, while others have pointed out that the stock is doing phenomenally. I pointed out that marketing (see the link above) is the link between the "changing the way that we live" mantra and their financial success. They need to convince people that they are innovating in unique and novel ways that preclude the need for any other solutions, which allows consumers to feel that they aren't missing anything by joining the technological ecosystem equivalent of Texas A&M. The problem here is that Apple's innovations are bland, their patents are laughable, and their hardware is cobbled together from heavily marked-up off-the-shelf parts (albeit in a severely limited number of patterns which makes it reliable). Marketing is the force that allows the shiny apple logo to smooth over all of those ills in the mind of the consumer.
People on this thread have repeatedly accused me of disliking Apple, but that's untrue and probably stems from the assumption that I really mean that "Windows PCs are better than Apple PCs". That's not my argument at all. I am in favor of open computing, whether that means standards, software source code, or bandwidth allocation. While I despise Microsoft, I find that Apple is the true antithesis of open computing. Everything that they do is based on making entire ecosystems out of closed, proprietary hardware and software whose chief goal is to prevent end-users from doing things with it. Even then, it's hard for me to really blame Apple or Jobs for selling products to make a profit for their shareholders (which I have been at several times in the past)- it's what they do.
The only real anger is toward the people who buy into the Apple culture, because they are indirectly hurting me. When someone votes with his wallet in favor of the "I don't care if you **** me, just so long as it's easy to use" business model that Apple preaches, it gives Apple more power to influence the market. The list of things that you can't do on an iPad makes linux look like a rock star (despite the fact that this is the major criticism of linux), yet people still line up to buy them. This list of deficiencies is deliberate, yet even on this thread there are a number of people defending Apple's decision to randomly remove features. An open marketplace renders companies that pull this kind of stunt uncompetitive, and forces them to change or kills them. I want a marketplace in which businesses compete for my dollar, rather than telling me what useless shiny thing they're going to allow me to use in place of the real functionality that has been missing for more than a decade. Supporting Apple (or MS, for that matter) by purchasing their products is a direct and long-lasting harm to all consumers of computing products.