I don't think it's a given that we shouldn't keep using that codec. For example, maybe the improvement is due to an open source hacker working in their spare time to make the world a better place. Do we tell them their contribution isn't welcome until it meets the community's benchmark for equity?
Your same argument can also be used to degrade the performance for all other groups, so that group X isn't unfairly disadvantaged. Or, it can even be used to argue that the performance for other groups should be degraded to be even worse than group X, to compensate for other factors that disadvantage group X.
This is argumentum ad absurdum, but it goes to show that the issue isn't as black and white as you seem to think it is.