The real impact of Sony's MPEG-2/Blu-ray decision

Why oh why would Sony choose the positively antique MPEG-2 for their Blu-ray movies instead of the newer and sexier VC-1 and MPEG-4 alternatives?

Ars Technica says it's all about the money and points out specifics, not to mention how their choice may affect how we make use of features like managed copy. Part of their explanation for Sony splitting with Toshiba and the DVD forum has to do with their unwillingness to cede some control of content to software makers like Microsoft and others who would not be tied to the disc format the way Sony is. As Bill Gates has said, he doesn't see optical discs lasting much longer as a delivery mechanism for content, and that runs counter to Sony's ability to leverage their hardware and patents to make money.

More on Sony's love for the old school after the jump.

Directly affecting the consumer is that even if managed copy is enabled on blu-ray discs, if they are using MPEG-2, movies will take up much more space on a hard drive possibly rendering the feature useless. As someone who drives a car made in the 70's that gets 10~ mpg, I can appreciate nostalgic inefficencies in trade for a proven product, to an extent.

(Former) Warner Home Video boss Warren Lieberfarb is particularly nonplussed by Sony's strategies, and recently implored the industry to side with Microsoft and Toshiba behind HD-DVD because he feels it is much better suited for the Internet and the digital revolution. I really wonder if we will see any late shifts in the studios support for one format or another because things are heating up quickly as the two formats still have not yet hit shelves, and even the producers seem unsure what to expect when they do.

Interesting problems like these are why I'm not ready to throw support or call a winner in the next generation scuffle yet, because it's nearly impossible to tell what will provide the best usage for me as a consumer.