I'm pretty sure h264 is the superior codec in all regards except for that pesky license issue. It encodes faster and creates smaller files that look better. From (lead x264 developer and HN user) DarkShikari[1]:
"Overall, VP8 appears to be significantly weaker than H.264 compression-wise. The primary weaknesses mentioned above are the lack of proper adaptive quantization, lack of B-frames, lack of an 8×8 transform, and non-adaptive loop filter. With this in mind, I expect VP8 to be more comparable to VC-1 or H.264 Baseline Profile than with H.264. Of course, this is still significantly better than Theora, and in my tests it beats Dirac quite handily as well.
...
Finally, the problem of patents appears to be rearing its ugly head again. VP8 is simply way too similar to H.264: a pithy, if slightly inaccurate, description of VP8 would be “H.264 Baseline Profile with a better entropy coder..."
I won't pretend to know what all of those terms mean off the top of my head, but if the lead x264 developer sees absolutely no technical advantage in WebM vs. h264, that sounds pretty damning to me.
As for why x264 encodes h264 so much faster than ffmpeg or whatever encodes WebM, the simplest explanation would be that there is much greater demand for an optimized h264 encoder. WebM has some admittedly large users (Wikimedia Foundation, Youtube for browsers with no h264 support and no flash player, and now 4chan), but they're still vanishingly small in comparison to the users of h264 ("the entire video industry").
I think you are underplaying the support of H.264. Almost every single camera (video or photo), console, handheld device, browser, editing tool, effects tool, phone, tablet, OS, digital video player, website available today supports H.264.
People complain about it being closed but actually it is far more open on the hardware side since each of the big manufacturers are part of the H.264 process.
h.264 has several profiles. Support for particular profiles in hardware varies. If you want to do low latency encoding with a hardware "h.264 encoder" for video conferencing you may find that you're out of luck. Since there is only one VP8 profile, hardware VP8 means hardware VP8.
H.264 defines a number of profiles and levels that define the acceptable tools from the overall suite that a conforming decoder implementation can rely on. "Baseline" uses very few of these tools, relative to the more sophisticated profiles.
"Overall, VP8 appears to be significantly weaker than H.264 compression-wise. The primary weaknesses mentioned above are the lack of proper adaptive quantization, lack of B-frames, lack of an 8×8 transform, and non-adaptive loop filter. With this in mind, I expect VP8 to be more comparable to VC-1 or H.264 Baseline Profile than with H.264. Of course, this is still significantly better than Theora, and in my tests it beats Dirac quite handily as well.
...
Finally, the problem of patents appears to be rearing its ugly head again. VP8 is simply way too similar to H.264: a pithy, if slightly inaccurate, description of VP8 would be “H.264 Baseline Profile with a better entropy coder..."
I won't pretend to know what all of those terms mean off the top of my head, but if the lead x264 developer sees absolutely no technical advantage in WebM vs. h264, that sounds pretty damning to me.
As for why x264 encodes h264 so much faster than ffmpeg or whatever encodes WebM, the simplest explanation would be that there is much greater demand for an optimized h264 encoder. WebM has some admittedly large users (Wikimedia Foundation, Youtube for browsers with no h264 support and no flash player, and now 4chan), but they're still vanishingly small in comparison to the users of h264 ("the entire video industry").
[1] http://x264dev.multimedia.cx/archives/377