Being good enough also depends on the context that the video will be used in. For example, I have an HTML5 video site where closer to 100% of the audience is either FF or Chrome. Both support VP8 out of the box, which means I only have to keep one copy of the video to serve to all users. If I had to target more browsers, such as Safari or IE, I would have to keep two copies of every video in order to work on all browsers (or worse, use flash as a work around).
I am okay with the minor loss in quality, just for the ease of managing a lot of videos and a lot of disk space.
