h264 is ubquitous.
And so was Gif, and we know how that went...
It's really stupid to deny the reality that people want to use it because of politics which is what it boils down to.
In the long run, yes. But since they are obviously not denying the "reality", I guess it isn't stupid afterall?
I recall that one of Mozilla's mission is to promote an open Web, in which case it would be stupid to adopt h264. Well, they tried, but at this point, it would be more stupid not to adopt it.
To sum it up, h264 adoption, or lack thereof, is just "stupid".