The geek sees everything in terms of the "open" web.
But there is more to digital video than video distribution through the web.
The "distribution" is orthogonal to the codec being used. Most of the things that make a good "digital video" codec for the "web", also make it exceptionally good for physical media, dedicated hardware, etc., etc.
Which is why the mainstream commercial codecs dominate here.
No, MPEG codecs dominate, because they had NO open competitors, until *just now*.
VP3 was okay at the time, but it wasn't support by anything, Theora went nowhere for a DECADE and was awful compared to contemporary codecs, by the time they finalized their not-quite-VP3 format, and started pushing for adoption.
VP8 was a good codec, but it didn't get open sourced until LONG after H.264 had an overwhelmingly dominant installed base. The MPEG-LA also did their dammedest to threaten to sue anyone who used it, but now such challenges have been conclusively settled in court.
It's only just now, this year, that VP9 is being released for unencumbered use right about the same time as HEVC/H.265 came out. So it's only now that we'll see if the market is ready, willing, and able to adopt open formats.