I've always found the mobile hardware argument a bit strange. I've never watched any full-length movies on my smartphone, the screen is simply too small to be comfortable. I might watch short Youtube videos once in a while but does it really drain the battery significantly if 3 minutes of video is not hardware accelerated? I find that hard to believe, especially considering that Wifi and 3G already drain tons of battery.

I'd rather watch full-length movies on my laptop, which has a programmable GPU meaning that it's possible for someone to make a hardware accelerated Theora decoder.